the peace corps

Performance and Accountability Report

Fiscal Year 2014
Paul D. Coverdell Peace Corps Headquarters

1111 20th Street NW, Washington, DC 20526

Peace Corps

Performance and

Accountability Report

Fiscal Year 2014

November 17, 2014

This report is available at www.peacecorps.gov/docs.

Send comments or questions to www.peacecorps.gov/contactus or to the Peace Corps mailing address above.
Where Peace Corps Volunteers Serve

The Caribbean (IAP)

Dominican Republic

Eastern Caribbean:

 Dominica

Grenada⁄Carriacou

 St. Lucia St. Vincent⁄Grenadines

Jamaica

BelizeColombiaCosta RicaEcuadorEl SalvadorGuatemalaGuyanaMexicoNicaraguaPanamaParaguayPeru

Albania

ArmeniaAzerbaijanGeorgiaKosovoKyrgyz RepublicMacedoniaMoldova

Pacific Islands (IAP)

Federated Statesof MicronesiaFijiSamoaTongaVanuatu

North Africa andthe Middle East (EMA)

JordanMorocco

Asia (EMA)

CambodiaChinaIndonesiaMongoliaNepalPhilippinesThailand

Africa

BeninBotswanaBurkina FasoCameroonEthiopiaGhanaGuineaLesothoLiberiaMadagascarMalawiMali

MozambiqueNamibiaRwandaSenegalSierra LeoneSouth AfricaSwazilandTanzaniaThe GambiaTogoUgandaZambia

Latin America (IAP)

Eastern Europe/Central Asia (EMA)

Legend: 

EMA = Europe, Mediterranean, and Asia Region

IAP = Inter-America and the Pacific Region
Contents

The Director of the Peace Corps iii

Management’s Discussion and Analysis 1

Mission and Overview of the Peace Corps 2

Core Values and Organizational Structure 3

Work of the Volunteers 5

Performance Highlights 18

Looking Forward 33

Analysis of Financial Statements 37

Analysis of Systems, Controls, and Legal Compliance 40

Management Assurances 43

Performance Section 45

Introduction 46

Performance Results by Strategic Objective 48

1. Volunteer Well-Being 48

2. Service Opportunity of Choice 50

3. Development Impact 55

4. Cross-Cultural Understanding 59

5. Continuation of Service 61

6. Diversity and Inclusion 65

7. Site Development 68

8. Train-Up 71

9. High-Performing Learning Organization 73

10. Global Connectivity 76

11. Measurement for Results 78

Evaluation and Research 82

Financial Section (Includes audited information) 95

Message from the Chief Financial Officer 96

Financial Statements (Audited) 99

Notes to the Financial Statements (Audited) 103

Inspector General’s Audit Transmittal Letter 115

Auditor’s Report 118

Other Information 135

Inspector General’s Statement on the Peace Corps’

Management and Performance Challenges 136

Summary of Financial Statement Audit and Management Assurances 144

Appendices 145

Appendix 1 – Status of Significant Deficiencies, Noncompliances, and Nonconformance 146

Appendix 2 – Verification and Validation of Performance Data 149

Appendix 3 – Glossary of Acronyms 153
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iii

I am pleased to present the Peace Corps’ Performance and Accountability Report for FY 2014 on behalf of Peace 

Corps Volunteers and staff around the world. This report demonstrates the progress our agency has made on 

achieving its strategic objectives, accountability, and operational effectiveness. The report also highlights some of 

the exceptional work of Volunteers and staff.

Since 1961, the agency has advanced a mission of world peace and friendship through community-based 

development and cross-cultural understanding. Peace Corps Volunteers and staff accomplish this mission 

through three strategic goals:

1. Building Local Capacity: Advance local development by strengthening the capacity of local communities and 

individuals through the service of trained Volunteers

2. Sharing America with the World: Promote a better understanding of Americans through Volunteers who live 

and work within local communities

3. Bringing the World Back Home: Increase Americans’ awareness and knowledge of other cultures and global 

issues through Volunteers who share their Peace Corps experiences and continue to serve upon their return 

The Peace Corps remains one of America’s best loved and most innovative ideas. In this complex and 

interconnected world—where our future depends on global cooperation, built on relationships of trust—the impact 

and relevance of the Peace Corps’ work has never been more important. Volunteers help their communities tackle 

some of the most pressing development challenges of our time, while building bridges of friendship between our 

nation and others. When they return home, our Volunteers bring their intercultural skills and global perspectives 

to enrich every state in our union.

More than 215,000 Americans have served in 140 countries on behalf of the Peace Corps since 1961. At the end 

of FY 2014, 6,818 Volunteers are serving in 64 countries around the world. The agency’s appropriated funding for

FY 2014 of $379 million (compared to slightly more than $356 million in FY 2013) enables our agency to more 

fully support our Volunteers in the places where the greatest impact can be achieved.

In FY 2014, the agency opened a new program in Kosovo, restarted the previously suspended program in Mali, 

and moved forward with plans to open or reopen programs in Burma, Comoros, and Timor Leste in FY 2015. 

The agency also made several decisions in FY 2014 to safeguard the health, safety, and security of our Volunteers. 

Peace Corps programs in Ukraine and Kenya were suspended due to escalating security concerns. Additionally, 

the spread of the Ebola virus in West Africa prompted the temporary removal of 340 Volunteers from Liberia, 

Guinea, and Sierra Leone.

In July 2014, we announced sweeping changes to our application process which makes applying to the Peace Corps 

simpler, faster, and more personalized than ever before. Under this new recruitment initiative, applicants are now 

able to choose their country of service and apply to specific programs, and do so through a new, shorter application. 

As a result, the agency received 17,336 applications for two-year service positions in FY 2014—the highest number 

of applications received since 1992. When combined with applications to the Peace Corps Response program, the 

THE DIRECTOR OF THE PEACE CORPS

WASHINGTON, D.C.
iv

agency received a total of 19,151 applications in FY 2014, demonstrating great interest among the American people 

to serve in the Peace Corps.

The health, safety, and security of our Volunteers remain the Peace Corps’ highest priorities. During FY 2014, the 

agency conducted an internal review of the Sexual Assault Risk Reduction and Response (SARRR) program—a 

program mandated by the Kate Puzey Peace Corps Volunteer Protection Act of 2011. A review of SARRR program 

policies and procedures will commence in November 2014.

Additional accomplishments and challenges related to each of the agency’s 11 strategic objectives may be found in 

the Performance Highlights Section.

Independent external auditors rendered an unmodified (clean) audit opinion on the agency’s financial statements, 

with no material weaknesses identified by the auditors or through internal managerial reviews. There were, though, 

three instances of noncompliance with laws and regulations identified. My Qualified Management Assurance 

statement along with that of the chief financial officer provide reasonable assurance that the internal controls 

and financial management systems meet the specified objectives in the Federal Managers’ Financial Integrity 

Act (FMFIA) as shown in the Management Assurances Section with the exception of one nonconformance with 

financial management system requirements for the Federal Information Security Management Act of 2002. 

Difficulties do remain, however, in satisfying the management and performance challenges issued by the Inspector 

General and in resolving the agency’s long-standing audit significant deficiencies. 

The Association of Government Accountants awarded the agency the prestigious Certificate of Excellence in 

Accountability Reporting for the seventh time for its FY 2013 Performance and Accountability Report. This 

award recognized not only the accountability of the Peace Corps but also its many performance management 

accomplishments.

The financial and performance data presented in this report are fundamentally complete and reliable.

Improvements in financial management implemented during FY 2014 and planned future improvements are 

shown in the Message from the Chief Financial Officer in the Financial Section of this report.

Due to the extensive reforms and operational improvements over the last few years, the Peace Corps is now better 

positioned than ever before to make a measurable difference in communities across the globe, in the lives of 

Volunteers, and in communities across our nation. I am so proud of our Volunteers and all of our staff, who are 

devoted to serving our country, by serving the cause of peace.

Sincerely,

Carolyn Hessler-Radelet, Director

November 17, 2014
Management’s Discussion and Analysis
2 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

The Peace Corps has been a leader in international 

development and citizen diplomacy for over 50 years. 

From the late-night campaign stop at the University 

of Michigan where then-Senator Kennedy challenged 

students to serve their country by helping people in 

the developing world to today, the agency has been 

guided by a mission of world peace and friendship. 

The Peace Corps of today is a bold and forwardleaning organization with deep roots grounded in 

the purpose and ideals of its founders. The agency 

sends Americans abroad to tackle the most urgent 

needs of people around the world. Volunteers 

work at the grassroots level with local people and 

organizations to develop sustainable solutions 

that address persistent challenges. Volunteers live 

and work in local communities—in so doing, they 

build life-long friendships and promote mutual 

understanding between the United States and their 

host communities.

Being a Peace Corps Volunteer is a life-changing 

experience. When Volunteers return home, they 

bring back new skills and experiences that stay 

with them for the rest of their lives. These returned 

Volunteers never truly end their service. They 

continue to serve the United States and their country 

of service by sharing their experiences with their 

families, friends, and colleagues and by sustaining 

their commitment to volunteerism and public service 

both at home and abroad.

Mission and Overview of the Peace Corps 

The Peace Corps mission is to promote world peace and friendship through

community-based development and cross-cultural understanding.

Historical

Officially established:

Americans who have served:

Total host countries served:

Country that has hosted the

most Volunteers historically:

Current

Host countries:

Total Volunteers:

Largest program:

Gender:

Racial/ethnic minorities:

Average age:

Volunteers over 50:

March 1, 1961

215,000+

140

Philippines (8,860)

64

6,818

Senegal (264 Volunteers)

63% female, 37% male

25 % of Volunteers

28

7%

Peace Corps Facts
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 3

Management’s Discussion and Analysis

Organizational Structure

In FY 2014, the Peace Corps maintained active 

programs in 64 countries, administered by 

61 overseas posts. Programs were suspended in 

Ukraine and Kenya due to security concerns. The 

agency also temporarily removed Volunteers from 

Guinea, Liberia, and Sierra Leone due to the Ebola 

outbreak in West Africa.

Each post is led by a country director and supported 

by safety and security, medical, programming, 

financial, training, and administative staff. Overseas 

posts are organized into three geographically based 

regions: Africa; Europe, Mediterranean, and Asia 

(EMA); and Inter-America and the Pacific (IAP).

The Peace Corps’ domestic operations consist of 

supporting and providing strategic guidance to 

overseas posts, recruiting and selecting future 

Volunteers, promoting programs to encourage 

returned Volunteers to continue contributing to 

the Peace Corps mission, and performing central 

oversight functions. The Peace Corps Headquarters 

is located in Washington, D.C., and regional 

recruitment offices are located in Atlanta, Chicago, 

Dallas, Los Angeles, New York City, San Francisco, 

and Seattle.

An organizational chart follows.

Core Values and Organizational Structure

The Peace Corps advances its mission through the work of its Volunteers. The agency is structured to address 

the unique needs of Volunteers while they serve in local communities, often under hardship conditions. The

well-being and success of Volunteers are at the center of how the Peace Corps operates. 

The following core values shape and guide decisions at all levels in the agency to support the thousands of 

Volunteers serving across the world.

Volunteer Well-Being

Quality and Impact

Commitment to

National Service

Diversity and Inclusion

Evidence-based

Decisions

Innovation

The Peace Corps works to provide a safe, healthy, and productive service 

for every Volunteer. The safety, security, and physical and emotional 

health of Volunteers are the agency’s top priorities.

The Peace Corps actively supports a culture of inclusion that builds on 

the strengths of the diversity of the American public and of the countries 

in which we serve.

The Peace Corps uses high-quality data and evidence to focus resources 

on agency priorities, inform performance improvements both in the field 

and at headquarters, and promote institutional learning.

The Peace Corps utilizes innovative approaches and technology to solve 

both persistent and emerging operational challenges and to advance 

local development.

The Peace Corps seeks to expand opportunities for Americans to serve 

their country by volunteering their time in the service of others.

The Peace Corps pursues quality improvements to strengthen its 

programs while maintaining a meaningful global presence.
4 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Director

Carrie Hessler-Radelet

Office of Inspector 

General

Office of Congressional 

Relations

Office of the

General Counsel Office of Civil Rights

and Diversity

Deputy Director

White House Liaison

Senior Advisors

Office of Victim

Advocacy

Office of 

Innovation

Office of the Chief

Financial Officer

Office of the ChiefInformation Officer

Office of Health

Services

Office of Safety

and Security

Office of Global 

Operations

Office of

Communications

Executive Secretariat

Office of Third Goal

and Returned

Office of Strategic

Volunteer Services

Partnerships

Europe, 

Mediterranean, and 

Asia Region

Africa Region

Office of 

Programming and

Training Support

Office of Global 

Health and HIV

Peace Corps 

Response

Inter-America and 

the Pacific Region

Chief of Staff

Deputy Chief

of Staff

Office of Volunteer

Recruitment

and Selection

Office of

Management

Chief Compliance

Officer

Overseas 

Posts

Overseas 

Posts

Overseas 

Posts

Office of Strategic 

Information, Research, 

and Planning

Peace Corps Organizational Chart
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 5

Management’s Discussion and Analysis

Work of the Volunteers

The Peace Corps approach to development is unique. Rather than providing direct monetary aid to host 

country governments, the Peace Corps provides technical assistance to local communities through the work of 

skilled Volunteers. By speaking local languages and living and working at the same level as their local partners 

and beneficiaries, Volunteers build mutual trust and develop a deep understanding of community needs and 

capacity. This enables the Peace Corps to contribute to host country development at the local level where the 

world’s most persistent development challenges have a direct human impact.

Volunteers’ work is not solely designed to advance local development outcomes (Strategic Goal One). To fully 

advance the Peace Corps mission, Volunteers are also tasked with building a better understanding of Americans 

in host communities (Strategic Goal Two) and with increasing Americans’ awareness of other cultures both 

during and after their service and by continuing to engage in public service (Strategic Goal Three). The three 

Peace Corps strategic goals are dependent upon and reinforce one another, and Volunteers regularly contribute 

to each of them while working in their communities. 

Countries 

request 

Volunteers

Volunteers 

live and 

work at 

local, 

grassroots 

level

Volunteers 

learn local 

languages 

and cultures 

and build 

relationships 

and trust 

with local 

people

Volunteers use 

their 

knowledge of 

the local 

context to 

collaborate with 

local people on 

projects that 

address 

community 

needs

By partnering 

with local 

counterparts, 

Volunteers 

strengthen the 

capacity of local 

individuals and 

communities to 

solve their own 

problems

Local 

conditions are 

improved and 

those 

improvements 

are sustained 

after 

Volunteers 

leave
6 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Peace Corps Programmatic Sectors

Volunteer projects vary across the world as they 

are designed to respond to local needs. The work of 

Volunteers falls within six programmatic sectors: 

Agriculture, Community Economic Development, 

Education, Environment, Health, and Youth in 

Development. Peace Corps Response Volunteers 

work on short-term, high-impact assignments that 

may be in one or more of these sectors. 

AGRICULTURE

Volunteers: 348 (5 percent)

Countries: 8

Agriculture Volunteers work with small-scale 

farmers and families to increase food security 

and production and adapt to climate change while 

promoting environmental conservation practices. 

They introduce farmers to techniques that prevent 

soil erosion, reduce the use of harmful pesticides, and 

replenish the soil. Volunteers work alongside farmers 

on integrated projects that often combine vegetable 

gardening, livestock management, agroforestry, 

and nutrition education. Additional information on 

the Agriculture sector is at www.peacecorps.gov/

agriculture. 

38%

24%

9%

12%

9%

5% 3%

Community

Economic

Development

Enviroment

Youth in

Development

Agriculture Peace Corps

Responce

Education

Health
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 7

Management’s Discussion and Analysis

Selected work by Agriculture Volunteers:

• Food security education in Burkina Faso:

Volunteers in Burkina Faso organized a 

camp to increase Burkinabe involvement and 

participation in their communities to combat 

food insecurity. Over 60 individuals from 

14 different villages and towns participated 

in the event where they were provided with 

the opportunity to design community-based 

food secure projects. The camp was designed 

in collaboration with local professionals 

(agricultural specialists, teachers, nurses, and 

others). It included sessions on gardening, 

accounting and money management, 

nutrition, and other issues. The camp prepared 

participants to bring lessons learned back to 

their homes in the form of projects, information 

sessions, songs, and games. 

• Off-season vegetable production in Nepal:

Two Volunteers and their counterparts in 

Nepal provided training on construction of 

irrigation systems using locally available 

materials (bamboo, wood, wire, and string) 

and material provided by local government 

partners. The demonstration drew the attention 

of many local farmers, and the Volunteers used 

the opportunity to promote other activities 

designed to increase agricultural production, 

including double-digging and micro-irrigation 

for vegetable production.

• Rural aquaculture promotion in Zambia:

In Zambia, Volunteers trained over 600 

individuals on aquaculture techniques for 

site selection, surveying, and staking of fish 

ponds. Training sessions included discussions 

on the qualities of good fish ponds as well as 

miniature and full-scale fish pond construction 

demonstrations.

Volunteer Voice: Making vegetable soup with 

students in Guatemala

“On the first day when I arrived at my site, I worked 

with my counterpart from Save the Children and 

an agriculture technician to develop my work plan 

for the next nine months. We identified school 

gardening in the surrounding communities as one 

of my primary activities. With the help of the local 

agricultural technician, we identified a small rural 

community to work with, and within one week, the 

school garden project was started.

While we worked to build the garden, which 

included terracing a hillside and constructing raised 

beds, I developed a 12-week curriculum for the sixth 

grade class to use while they worked in the garden. 

The curriculum covered the science of gardening, 

including the germination process, plant nutrition, 

beneficial insects, and nutrition. The curriculum 

also covered math by teaching how to calculate 

germination percentages and how to measure the 

height of plants. 

By the end of the 12-week curriculum, students 

learned a great deal about gardening—how to 

make and use compost and how to grow vegetables 

in their community. On graduation day, we gave 

each student packages of vegetable seeds to start 

their own family garden. We also made a huge 

vegetable soup that included vegetables brought by 

students as well as many leaves from their garden. 

This provided an opportunity to demonstrate one 

important lesson to the students—that the leaves 

from plants are as nutritious (or more nutritious) as 

the vegetables. 

The process of making vegetable soup with the 

school cook and then serving it to all of the school’s 

students and teachers was one of the most satisfying 

moments of my entire Peace Corps service.”
8 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

COMMUNITY ECONOMIC

DEVELOPMENT 

Volunteers: 624 (9 percent)

Countries: 27

Community Economic Development Volunteers 

work with development banks, local and 

international nongovernmental organizations, and 

municipalities to strengthen infrastructure and 

encourage economic opportunities in communities. 

They frequently teach in classroom settings and work 

with entrepreneurs and business owners to develop 

and market their products. Some Volunteers also 

teach basic computer skills and help communities 

take advantage of technologies such as e-commerce 

and distance learning. Additional information on 

the Community Economic Development sector is at 

www.peacecorps.gov/business. 

Selected work by Community Economic 

Development Volunteers:

• Entrepreneurship youth clubs in Nicaragua 

and Peru: Volunteers in Nicaragua and Peru 

facilitate youth clubs that teach basic business 

skills and entrepreneurship to young people. 

Each year, the clubs hold several business plan 

competitions to showcase youth enterprise ideas 

at the local and national levels.

• Organizational development in Armenia:

Volunteers collaborated with local partners in 

Armenia to organize workshops and one-on-one 

coaching sessions to help local organizations 

develop strategic plans and fundraising 

strategies. One organization was able to 

improve its management and business systems 

and to secure membership status with www.

GlobalGiving.org, a crowd-funding website.

• Savings group development and training 

in Kenya: Volunteers in Kenya mobilized 

and trained community groups to develop 

village-based savings and loan associations. 

Community members can now take small loans 

from the group to start or expand incomegenerating activities such as small-scale 

bakeries, welding and repair activities, and 

buying and selling vegetables.

Volunteer Voice: Developing organizational and 

leadership skills in Macedonia

“A local organization had been working to find a 

solution to the housing crisis affecting some of the 

Roma families in the country. The Forum of Young 

Roma (the young volunteers of the organization) 

were also looking for a new project and wanted to 

receive some training on humanitarian aid actions. 

I worked with a local colleague to apply for a small 

project assistance grant to fund a seminar on various 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 9

Management’s Discussion and Analysis

topics that would culminate in the planning of a 

humanitarian action. The goal of the project was to 

energize and motivate the young volunteers to lead 

a humanitarian campaign to improve housing in the 

local Roma community by acquiring knowledge and 

skills in the areas of networking, fundraising, and 

time management. 

The volunteers attended a two-day seminar 

that included such topics as the importance of 

volunteering, time management, teamwork, 

networking, fundraising, challenges in mobilizing 

the community, and, finally, instruction on how to 

write a community action plan. The original goal to 

ultimately improve the housing situation turned out 

to be too large of a project for the volunteers. They 

decided it would be more realistic for them to plan 

and implement a fundraising campaign and create 

hygiene packets for distribution to the very poor 

families in the neighborhood.

Although it was a small group, they were very 

motivated to make a difference in their community, 

and the group increased its membership as a result 

of the seminar. The group developed activities 

to achieve their goals and a clear action plan for 

completing their work. This clearly demonstrated 

their enthusiasm and motivation to tackle some 

pressing issues in the community. 

As a result of this project, the volunteers acquired 

new knowledge in how to develop a network, how to 

organize a fundraising campaign, how to manage 

their time effectively, how to handle challenges 

inside and outside the community, and how to design 

a community action plan. All participants in the 

project expanded their network of contacts in the 

community and have since enlisted the support of 

other organizations for their humanitarian action.”

EDUCATION 

Volunteers: 2,620 (38 percent)

Countries: 51

Education Volunteers play an important role 

in creating links among schools, parents, and 

communities. They work in elementary, secondary, 

and postsecondary schools as math, science, 

conversational English, and resource teachers or as 

early-grade reading and literacy teacher trainers. 

Volunteers also develop libraries and technology 

resource centers. Additional information on 

the Education sector is at www.peacecorps.gov/

education.
10 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Selected work by Education Volunteers:

• Development of literacy programs in Guyana:

Volunteers in Guyana collaborated with their 

schools to teach phonemic (letter sound) 

awareness, letter recognition, sight reading, 

and other fluency activities for low-performing 

students. An assessment conducted with the 

Ministry of Education’s National Diagnostic 

Test for Literacy at the end of the program 

showed considerable gains for many students.

• Massive Open Online Courses in Mongolia:

A Volunteer in Mongolia led a study group to 

introduce students to Massive Open Online 

Courses and helped them develop the study 

habits necessary to succeed in U.S.-based, free 

online courses. The first course—a business 

strategy course offered by the University 

of Virginia—garnered the participation of 

34 students. Over 130 students attended the 

second course—a basic writing course offered 

by Mt. San Jacinto College in San Jacinto, 

California. Both classes were supported by study 

groups led by the Volunteer. 

• Computer skills coaching in Cameroon:

Volunteers in Cameroon used their computer 

skills to contribute to the personal and 

professional development of students. 

Volunteers coached secondary-school students 

on how to write effective articles and how 

to publish newsletters and blogs (the school 

blog may be found here: http://gssbessiawum.

blogspot.com). In addition to building the 

skills of students, the activity resulted in the 

dissemination of information on health-related 

issues in communities throughout Cameroon.

Volunteer Voice: Strengthening girls’ education 

in Liberia

“As a Peace Corps Volunteer in Liberia, I noticed 

the challenges Liberians faced on a daily basis, 

especially the constant struggles girls faced. The 

first day of school I asked my students to list their 

favorite hobbies. The boys talked about their love of 

playing football and volleyball, listening to music, 

and farming. Almost all of the girls responded that 

they loved cooking and washing. I was not entirely 

surprised—women and girls in Liberia have limited 

choices and spend much of their time on these 

domestic tasks. I always knew I wanted to empower 

women and girls during my service, but I didn’t quite 

know how or where to start. 

During a trip to Sierra Leone for vacation during 

Christmas break, I came across some bags that 

were made out of different pieces of lappas, a type 

of West African fabric. I thought that teaching girls 

at my site how to make similar bags might be a way 

to build valuable skills and to pay for continuing 

their education. I shared the idea with Sister Yamah 

Zawu—a teacher who had started a girls’ club the 

year before that was having trouble getting off the 

ground—and she thought it would be a great way 

to encourage the girls to participate in the club and 

stay in school. We called the new girls’ club the Bosh 

Bosh Project. The project is now a registered local 

nongovernmental organization with its own website 

(www.boshbosh.org) and Facebook page. The main 

focus of the project is to raise funds for students, 

female teachers, and community members through 

the sale of eclectic Bosh Bosh products made by the 

students in the club. In addition to enabling students 

to pursue their education, the club teaches valuable 

life skills through workshops on family planning, 

health, HIV/AIDS, business practices, and women’s 

rights. The club also encourages girls to become 

leaders in their community by providing them with 

the means to complete their education through 

scholarships.

When you educate one girl, you not only educate her 

entire village but our entire world.”
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 11

Management’s Discussion and Analysis

ENVIRONMENT 

Volunteers: 788 (12 percent)

Countries: 23

Volunteers lead grassroots efforts in their 

communities to protect the environment and 

strengthen understanding of environmental issues. 

They teach environmental awareness in elementary 

and secondary schools and to youth groups 

and community organizations. They empower 

communities to make their own decisions about 

how to protect and conserve the local environment. 

Volunteers also address environmental degradation 

by promoting the sustainable use of natural resources. 

Additional information on the Environment sector is 

at www.peacecorps.gov/environment. 

Selected work by Environment Volunteers:

• Environmental summer camp in Ethiopia:

A team of Volunteers in Ethiopia started an 

environmental camp for high school boys and 

girls. The Growing and Renewing our World 

camp (Camp GROW) focused on discovering the 

circle of life and included lessons on ecological 

concepts, microorganism form and function, 

tree planting, nature appreciation, human 

impacts, and other topics. Participants created 

environmental action plans to implement in 

their home communities. 

• Bee husbandry in Tanzania: A Volunteer in 

Tanzania initiated a small-scale bee husbandry 

project with 11 families. Through the project, the 

families learned about the biology of bees and 

their hives, hive construction and maintenance, 

sustainable honey and wax harvesting 

techniques, bee calendar development, and how 

to correctly wear protective clothing. The project 

also taught the participants about environmental 

conservation. Using the 50-acre site as an 

example of a protected area, the group created 

fire breaks and signs to surround the property 

to protect it from burning and tree-cutting. The 

families built 55 hives which will produce up 

to 30–40 kilos of honey every year. The project 

provided the families with supplemental income 

and food and taught the community about the 

benefits of environmental conservation. 

• An environmental education toolbox in 

Mexico: After interviewing over 80 percent 

of the teachers in their community and 

reviewing their textbooks, a Volunteer couple 

in Mexico identified the types of materials the 

teachers would find most useful to promote 

environmental awareness in the classroom. 

As a result of this research, the Volunteers 

developed an environmental education toolbox 

that the teachers can use in their classrooms. 

The toolbox contains fact sheets on local 

fauna and flora, games, hand magnifiers and 
12 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

thermometers, photographs, and a teacher’s 

guide. The Volunteers estimate that more than 

14,000 students will benefit from the project. 

Volunteer Voice: Organizing community cleanups in Paraguay

“The night before the clean-up, it rained—a lot. The 

next morning, rain was still threatening, and my 

community partner and best friend called me up 

with a frustrated tone in her voice asking if we should 

cancel it. I took one glance at the grey sky, and told 

her: ‘We’re doing it! Let’s call the radio stations to 

announce it. It’s not going to rain anymore.’

It didn’t. During the country’s first collaboration with 

International Coastal Cleanup—a campaign led by 

Ocean Conservancy—approximately 140 community 

volunteers participated in the first clean-up of the 

banks of the Paraguay River, which runs as the 

border between Paraguay and Argentina. By the end 

of the event that day, we had removed 1,450 kilos—a 

ton and a half—of trash.

People were so enthusiastic about the event that 

they wanted to know when there would be another 

clean-up. Others acknowledged that there was 

an urgent need for an efficient trash management 

system in the city to prevent the accumulation of 

trash in public places and to protect endangered 

natural resources.

Due to the success of this initial event, other local 

partners have expressed interest in collaborating 

with Ocean Conservancy and its International 

Coastal Cleanup campaign in order to continue 

bringing attention to this issue through positive and 

responsible actions.”

HEALTH

Volunteers: 1,632 (24 percent)

Countries: 38

Health Volunteers work within their communities to 

address important topics such as nutrition, maternal 

and child health, basic hygiene, and water sanitation. 

Volunteers also work in HIV/AIDS education and 

prevention programs to train youth as peer educators, 

develop appropriate education strategies, provide 

support to children orphaned by the pandemic, and 

create programs that provide emotional and financial 

support to families and communities affected by the 

disease. Additional information on the Health sector 

is at www.peacecorps.gov/health.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 13

Management’s Discussion and Analysis

Selected work by Health Volunteers:

• World Malaria Month in Uganda: In Uganda, 

160 Volunteers took part in World Malaria 

Month—an effort to expand the reach of World 

Malaria Day. Volunteers from all sectors 

distributed 2,500 bed nets, reached 5,400 

students with malaria prevention messages, 

and monitored 1,300 sleeping spaces for net 

usage.

• Hand-washing station and trash can 

installation in Benin: A Volunteer in Benin 

worked with the school administration 

to install four hand-washing stations and 

trashcans around the secondary school to 

contribute to campus cleanliness and improve 

student hygiene. After installing the devices, 

the Volunteer and local partners trained over 

3,000 students on their proper usage.

• Nutrition education in Cambodia: Volunteers 

and their counterparts in Cambodia trained 

over 7,000 community members on nutrition 

through cooking demonstrations, baby 

weighing, and the promotion of immediate and 

exclusive breastfeeding.

Volunteer Voice: Connecting rural communities 

to health care in Morocco

“I live in a very small community—so small that it 

doesn’t have a health clinic. Local people primarily 

work as subsistence farmers, and their incomes are 

stretched each month to meet basic needs for food, 

shelter, and education. Often, this means that they 

either do not visit the regional health clinic or delay 

visits until medical conditions become much more 

severe. Even when they go to the regional clinic, 

they may be unable to purchase prescriptions from 

the pharmacy. 

To improve access to health care, my community 

and I worked with the Ministry of Health to 

have a health caravan come to serve community 

members. The community provided food, tea, and 

a large house where the health caravan could be 

set up. We secured grant funding to cover the cost 

of transportation for 10 doctors and dentists. The 

Ministry provided—for free—an eye doctor, an 

OB-GYN, a dentist, and a fully stocked pharmacy. 

In all, approximately 300 people who may never 

have had access to health care before were able to 

see doctors and receive medicine.

The most uplifting part of this project was seeing 

the way the community pulled together to make it 

happen. The community exceeded all expectations 

with their hospitality toward the visiting caravan 

of doctors. The community also developed a strong 

relationship with the Ministry of Health—they are 

already working together to plan another health 

caravan this summer. Many times during my 

service, I have seen how the Ministry of Health 

really wants to serve these rural towns but has 

been unsure about how to best do so. I think that 

this project helped to start a relationship that can 

continue to help each group.”
14 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

YOUTH IN DEVELOPMENT 

Volunteers: 618 (9 percent)

Countries: 19

Youth in Development Volunteers work with youth in 

communities on projects that promote engagement 

and active citizenship. Volunteers across all sectors 

are trained to work with youth as community 

resources and as a means of enhancing the impact 

of their projects. Volunteers work with youth to 

promote healthy lifestyle choices related to sexual 

and reproductive health, physical activity, and 

substance abuse prevention. They prepare youth for 

work with financial literacy and vocational skills and 

engage youth as active citizens through volunteerism 

and service learning. Additional information on the 

Youth in Development sector is at www.peacecorps.

gov/youth.

Selected work by Youth in Development 

Volunteers:

• Preparation for the world of work in 

Azerbaijan: Volunteers in Azerbaijan utilized 

several approaches to prepare young women for 

employment. They supported the creation of a 

computer center for women, developed women’s 

leadership clubs focused on financial literacy 

and healthy living, and organized a national 

leadership conference with a local women’s 

organization. 

• Life skills and leadership summer camps 

worldwide: Volunteers across the world utilized 

summer camps as a strategy to engage young 

people and invigorate local youth clubs. Camps 

included Camp HEAL (Human Trafficking, 

Education, AIDS/HIV, and Leadership) in 

Ukraine, a Food Security Youth Camp in Ghana, 

and Girl-Tech in Uganda. Several Peace Corps 

programs implemented gender-focused camps 

such as Camp GLOW (Girls Leading our World) 

and Camp BRO (Boys Respecting each Other).

• Peer educator training in Cameroon: A 

Volunteer in Cameroon worked with his 

counterpart at a local university Red Cross 

club to develop a three-day training workshop 

for 44 members of the Peer Educator Leaders 

Club. The training was focused on building the 

capacity of the participants to deliver HIV/AIDS 

messages. At the end of the training, participants 

conducted outreach activities both inside and 

outside of the university for over 300 students. 

Volunteer Voice: Building life skills through 

theater in Ecuador 

“During training, we were taught many different nonformal education techniques for working with young 

people. In my service, I found these techniques to be 

essential—particularly the use of theater.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 15

Management’s Discussion and Analysis

At the beginning of my service, while I was still 

learning Spanish and trying to make a connection 

with the youth in my community, I started 

collaborating with a local nonprofit and a youth 

group. One of my first tasks was to support an artistic 

festival focused on the importance of caring for the 

environment. The youth group wanted to do a skit, 

but they could not come up with any ideas. I saw 

this as a great opportunity to connect with them, 

and I worked with them to develop a play about 

environmental pollution. I think I gained the respect 

of the teens in the youth group as a result of our work 

on the play.

During that time, I also began life-skills classes and 

workshops with younger kids in the community. It 

was difficult capturing their interest and attention—

they just did not seem to care. That is when I decided 

to give theater another try. Instead of simply talking 

at them, I involved them in the learning process. 

We took the life-skills topic of the week and talked 

about how we could turn it into a play. Together, we 

decided on the characters, setting, story, and more. 

Even though we only had five to six acting roles in 

each play, I involved all of the kids in the process, 

including designing sets using nothing more than big 

pieces of paper with our drawings of houses, schools, 

the forest, or other settings. We have performed six 

plays at different community festivals; some plays we 

just do within our own group or for the parents. This 

has been a wonderful way for me to teach the kids 

about self-esteem, good communication, conflict 

resolution, decision-making, and more. I am actually 

thinking about making a short movie with them 

next.”

PEACE CORPS RESPONSE 

Volunteers: 188 (3 percent)

Countries: 35

Peace Corps Response Volunteers serve in 

short-term, specialized assignments where they 

provide targeted assistance in challenging and 

diverse assignments that span the Peace Corps’ six 

programmatic sectors. Response Volunteers must be 

returned Peace Corps Volunteers, medical professionals, or have at least 10 years of work experience. 

Additional information on the Peace Corps Response 

program is at www.peacecorps.gov/response.
16 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Selected work by Peace Corps

Response Volunteers:

• Physician and nurse education in Malawi, 

Tanzania, and Uganda: Over 30 physician 

and nurse educator Peace Corps Response 

Volunteers through the Global Health Service 

Partnership taught 85 university courses and 

workshops to more than 2,800 students and other 

health care professional trainees. Volunteers 

utilized new teaching activities, including 

improved scenarios and problem-based learning 

guides, Ask the Professor Rounds, and nursing 

grand rounds. Volunteers also established new 

professional development activities for local 

health care professionals and students such as 

using a department needs assessment survey 

tool, establishing weekly journal clubs, and 

planning a nurse leadership conference.

Volunteer Voice: Examining poverty and hunger 

from the ground up in Guatemala

“Several times a year throughout rural Guatemala, 

the scene is the same. Entire families rise with the 

sun to travel from their remote communities to 

the municipal center, often walking for hours over 

unforgiving terrain. Few of these people have 9-to-5 

jobs, and even fewer wear watches; tardiness is 

universally understood and forgiven. Today, however, 

everyone is early. Women in indigenous dress and 

men in cowboy boots jockey for position outside the 

municipal salon, inside of which sits over 70 tons of 

freshly sealed food. Today is hand-out day.

On this particular occasion, the process is typical. 

Just like any hand-out day, the mayor gets the last 

word. He takes the stand and thanks the supplying 

institutions for the corn, beans, and cooking oil that 

will ease the struggles of his people this winter. He 

ends with a powerful yet disheartening question, 

posed directly to the gathering of people below.

“Quién entre ustedes es pobre?” “Who among you is 

poor?”

In unison, a sea of hands shoots into the air. “Poor” 

has an equally negative connotation in Spanish as 

it does in English, but representatives from over

700 families do not hesitate to classify themselves as 

such.

Why? After some time on the ground, the answer 

becomes clear: In Guatemala, a country that has been 

the focus of international relief efforts for years, poor 

people get stuff.

It is important to note that these people are not 

lazy. They do not play the system to their advantage, 

and they are not to blame. For years, institutions 

have simply provided aid without building capacity, 

creating dependence in rural communities 

throughout Guatemala. When you hear, “you are 

poor” or “you need help” enough times, you start to 

believe it.

As part of the government’s Feed the Future initiative, 

the U.S. Agency for International Development and 

the Peace Corps have partnered to take advantage of 

the Peace Corps’ unique grassroots perspective and 

experience to make a change to this cycle. As a Peace 

Corps Response Volunteer in Guatemala with Feed 

the Future, I’m working to be part of the solution.

By taking advantage of the extensive, on-the-ground 

experience that Response Volunteers bring to the 

table, local institutions are being strengthened across 

the country. For example, Response Volunteers 

work with the Ministry of Agriculture to train 

community promoters in family agriculture, poultry 

management, and preventative health. Instead 

of having their problems solved for them, these 

promoters are empowered to bring about positive 

change in their communities.

As a result, families are planting vegetable gardens 

and eating the highly nutritious vegetables they 

produce. Chicken vaccination campaigns are 

decreasing poultry loss and increasing meat 

availability in rural areas. Families are using local 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 17

Management’s Discussion and Analysis

resources to make simple yet important changes to 

their homes that keep their children healthy.

Interventions like these are not flashy. Working 

with fewer families with more frequency is a timeconsuming process that requires patience and 

dedication. But the Feed the Future approach 

employed by U.S. Agency for International 

Development and the Peace Corps creates sustainable 

progress. In the future, there is no doubt that people 

and organizations must adapt to an ever-changing, 

complicated development landscape. Despite the 

challenges, by sacrificing size for substance, they can 

make a real difference in people’s lives.”
18 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

The FY 2014 Performance and Accountability Report details the Peace Corps’ progress on its goals and objectives 

during the first year of the FY 2014–18 Strategic Plan (www.peacecorps.gov/strategicplan). The Peace Corps

FY 2014–18 Strategic Plan is the result of a comprehensive process that involved staff and Volunteers from across 

the world as well as key external stakeholders. The result is an ambitious plan that strengthens the far-reaching 

reforms of the last few years, focuses on addressing decades-old performance and management challenges, 

and leverages promising opportunities to increase the impact of Volunteers and improve operations. An 

interactive strategic plan orientation, as well as a message from the Director, is available at www.peacecorps.gov/

strategicplanorientation to ensure that staff, Volunteers, partners, and the public become familiar with the goals, 

objectives, strategies, and activities in the new strategic plan.

Performance Highlights

FY 2014–18 Strategic Plan

Strategic Goals1

Goal 1: Building Local Capacity

Advance local development by strengthening the capacity of local

communities and individuals through the service of trained Volunteers

Goal 2: Sharing America with the World

Promote a better understanding of Americans through

Volunteers who live and work within local communities

Goal 3. Bringing the World Back Home

Increase Americans’ awareness and knowledge of other cultures and global issues through

Volunteers who share their Peace Corps experiences and continue to serve upon their return

Strategic Objectives2

1. Volunteer Well-Being

Enhance the safety, security, and health of Volunteers 

through rigorous prevention and response systems 

and high-quality medical and mental health services

 2. Service Opportunity of Choice 

Position the Peace Corps as the top choice for talented 

Americans interested in service by reaching a new 

generation of potential Volunteers and streamlining 

the application process 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 19

Management’s Discussion and Analysis

3. Development Impact 

Advance community-based development by 

strengthening the capacity of local individuals and 

communities, focusing on highly effective technical 

interventions, and leveraging strategic partnerships 

4. Cross-Cultural Understanding 

Build a deeper mutual understanding of other 

cultures by developing long-lasting connections 

between American and host country individuals and 

communities 

5. Continuation of Service 

Support returned Volunteers’ continuation of service 

by fostering a vibrant alumni network, providing 

tools and resources to ease their transition after 

service, and offering opportunities for them to share 

their experiences 

6. Diversity and Inclusion

Actively recruit, support, and retain a diverse 

workforce and Volunteer corps and build an 

inclusive culture that encourages collaboration, 

flexibility, and fairness 

7. Site Development

Establish an environment conducive to Volunteer 

success through an integrated approach to 

developing effective projects, preparing work sites, 

and successfully collaborating with local partners 

8. Train-Up 

Develop a highly effective Volunteer corps through a 

continuum of learning throughout service 

9. High-Performing Learning Organization 

Cultivate a high-performing learning organization 

by investing in professional development for staff, 

improving staff retention, and strengthening 

institutional memory 

10. Global Connectivity 

Enable seamless communication and collaboration 

for all Volunteers and staff by modernizing and 

integrating information technology systems and 

leveraging the innovation of Volunteers and staff in 

the field 

11. Measurement for Results

Advance the agency’s ability to measure progress, 

improve performance, and demonstrate impact 

through integrated monitoring, reporting, and 

evaluation practices 

1

 The Peace Corps Act (1961) articulates three core goals that contribute to the Peace Corps mission of world peace and friendship: (1) To 

help the people of interested countries in meeting their need for trained men and women, (2) To help promote a better understanding of 

Americans on the part of the peoples served, and (3) To help promote a better understanding of other peoples on the part of Americans. These 

three core goals continue to serve as the foundation for the Peace Corps’ approach to development and the three strategic goals that guide 

the FY 2014–18 Strategic Plan.

2

 Strategic objectives may contribute to multiple strategic goals.
20 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Performance Improvement at the Peace Corps

Under the leadership of Director Hessler-Radelet, 

the Peace Corps engages in open, honest, and 

transparent conversations about performance 

improvement. The agency uses an evidence-based 

approach to monitoring and assessing performance 

with a focus on using data to identify the most 

effective and efficient strategies that will produce 

the greatest impact. The result is an inclusive and 

participatory culture of performance improvement 

in which Volunteers and staff at all levels are invested 

in strengthening the Peace Corps. 

The Peace Corps monitors and assesses 

performance throughout the year to ensure that 

offices are collaborating to meet agency goals and 

that resources are invested in proven strategies 

and activities. The Peace Corps deputy director 

serves as the chief operating officer and oversees 

the agency’s performance management system. 

The Office of Strategic Information, Research, and 

Planning (OSIRP) is responsible for strategic and 

performance planning and works closely with offices 

across the agency to collect and analyze data to 

inform policy, program, and budget decisions. The 

director of OSIRP also serves as the performance 

improvement officer for the agency.

The Quarterly Strategic Plan Performance Review 

process is the primary mechanism for monitoring 

and assessing performance throughout the year. 

During these reviews, which are chaired by 

Director Hessler-Radelet, senior managers from 

across the agency discuss performance data, share 

best practices, and develop strategies to meet 

performance targets when areas for improvement 

are identified. 

These quarterly performance reviews are 

transparent and open—staff at all levels are 

encouraged to attend and participate in the 

discussions. Leading up to the reviews each quarter, 

the agency determines the status of each of the 

26 performance goals in the strategic plan based 

on both quantitative and qualitative analyses. This 

quarterly assessment of progress allows the agency 

to focus efforts on performance goals where there is 

the greatest need and opportunity for improvement. 

FY 2014 Strategic Objective Progress Update

This section features a summary of the agency’s 

progress toward the 11 strategic objectives in the

FY 2014–18 Strategic Plan. Detailed information on 

the results for all 26 performance goals, as well as 

the agency’s verification and validation standards for 

each data source, are presented in the Performance 

Section.

The Peace Corps’ identification of its progress toward 

each strategic objective was informed by the agency’s 

first annual strategic review on June 23, 2014. The 

day-long meeting was chaired by Director HesslerRadelet and brought together senior leaders and 

agency staff to discuss how each office’s individual 

strategic and operational plans contribute to the 

achievement of the agency’s strategic objectives. 

Progress toward each of the strategic objectives is 

assessed and categorized in one of the following 

statuses:

Noteworthy progress: The agency is on track 

to achieve the strategic objective. Strategies and 

activities have been executed on schedule, and 

there is evidence to suggest they are leading to 

the desired outcomes. Performance goal targets 

have either been met or are expected to be met 

in the future as the result of planned strategies.

Area for improvement: An increased focus is 

needed by the agency to improve performance 

on the strategic objective. Some strategies and 

activities may have been executed, but more 

progress is needed to advance the strategic 

objective. Additional data may be needed to 

better understand performance.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 21

Management’s Discussion and Analysis

Status: Noteworthy Progress. Over the past few 

years, the Peace Corps has adopted significant 

reforms to enhance the safety, security, and health of 

Volunteers. Through a Volunteer-centered approach 

to safety, security, and health support, the agency 

relies on data and evidence to make decisions to 

protect the well-being of Volunteers. The agency has 

made significant progress on key reforms, including 

the development of the Sexual Assault Risk 

Reduction and Response (SARRR) program and 

improvements to Volunteer and staff training. The 

agency will evaluate the effectiveness of these and 

other significant reforms by exploring new methods 

for measuring Volunteer well-being in future years. 

Accomplishments:

• Ongoing implementation of the Kate 

Puzey Peace Corps Volunteer Protection 

Act of 2011: On September 1, 2013, 

the agency launched the final stages of 

its Sexual Assault Risk Reduction and 

Response program. In FY 2014, the agency 

has continued to implement all aspects of 

the program. Staff who provide support to 

victims of crime have completed mandatory 

SARRR training, and Sexual Assault 

Response Liaisons at all posts have been 

trained. Additional information is at http://

w w w.peacecorps.gov/volunteer/learn/

safety/support/puzey/. 

• Medical officer hiring, training, and 

retention: Longevity in the tenure of 

Peace Corps Medical Officers (PCMOs) is 

highly correlated to Volunteer satisfaction 

with medical and mental health services 

as well as other health outcomes. As a 

result, the agency has made PCMO hiring, 

training, and retention a priority to improve 

the services provided to Volunteers. 

Improvements include policy changes to 

streamline the PCMO hiring process, the 

development of a dashboard to track PCMO 

hiring metrics, and the establishment of a 

headquarters-based support unit to reduce 

the administrative burden on PCMOs.

Challenges: 

• Evolving security and health 

environments in host countries: The 

economic, political, and environmental 

conditions in many of the countries where 

Volunteers serve can be fragile. Volunteers 

often serve in communities where the 

potential for crime, conflict, and disease 

outbreaks exists. Many of these conditions 

are outside the agency’s control. The Peace 

Corps employs response and prevention 

systems to minimize risk and ensure that 

Volunteers return home safely; however, not 

all crime against Volunteers and Volunteer 

illnesses can be prevented.

Strategic Objective 1: Volunteer Well-Being FY 2014

Status

Enhance the safety, security, and health of Volunteers through rigorous 

prevention and response systems and high-quality medical and mental health 

services (Supports Strategic Goals 1, 2, and 3)

Noteworthy

progress
22 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Status: Noteworthy progress. The agency made 

sweeping changes to the application process, which 

has made applying to the Peace Corps simpler, 

faster, and more personalized than ever before. 

While performance goal targets were not met this 

year, the agency expects the significant increase in 

applications received after the launch of the new 

application process to continue into the next year 

and beyond. 

Accomplishments:

• Historic changes to the application 

and selection process: On July 15, 2014, 

Director Hessler-Radelet announced a 

series of extensive improvements to the 

application process. As a result of these 

changes, applicants can now choose the 

programs and countries to which they 

would like to apply. The application is also 

significantly shorter—the application can 

be completed in one hour, compared to 

eight hours for the previous application. 

Each open position also has “Apply By” 

and “Know By” dates so that applicants 

know when they can expect to receive an 

invitation to serve. Additional information 

on the new application process is at http://

w w w.peacecor ps.gov/media/for press/

press/2418/.

Challenges: 

• Reduction in the number of Volunteers 

in the field: After a period of extensive 

reform in which the agency prioritized 

investments in improving the quality 

of support provided to Volunteers, the 

number of Volunteers in the field has 

fallen over each of the last three years. The 

suspension of the programs in Ukraine and 

Kenya due to security concerns, as well 

as geopolitically motivated reductions in 

Volunteer requests from other countries 

and the temporary removal of Volunteers 

in Guinea, Liberia, and Sierra Leone due 

to the Ebola outbreak have further reduced 

the number of Volunteers serving. Having 

made investments in quality improvements, 

the Peace Corps is now positioned to 

steadily increase the number of Volunteers 

in the field. The agency is hopeful that 

Volunteers will be able to return to Guinea, 

Kenya, Liberia, Sierra Leone and Ukraine 

as conditions on the ground improve and 

is moving toward opening or reopening 

Peace Corps programs in countries such 

as Burma, Comoros, and Timor Leste. The 

Peace Corps is committed to increasing its 

presence across the world while it responds 

to evolving security and health situations in 

host countries.

Strategic Objective 2: Service Opportunity of Choice FY 2014

Status

Position the Peace Corps as the top choice for talented Americans interested in 

service by reaching a new generation of potential Volunteers and streamlining 

the application process (Supports Strategic Goals 1, 2, and 3)

Noteworthy

progress
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 23

Management’s Discussion and Analysis

Status: Area for improvement. More data 

are needed to fully assess whether the agency’s 

strategies for supporting and enhancing Volunteers’ 

development work are producing gains in local 

development outcomes. The Peace Corps is in the 

process of significantly enhancing its ability to 

measure the development impact of Volunteers 

through the improvement of existing data sources and 

the development of new data sources. Demonstrating 

the development impact of Volunteers is also being 

enhanced through the collection of baseline data 

for new country entries and new projects (Strategic 

Objective 11). 

Accomplishments:

• Implementation of the Global Health 

Service Partnership: Through the Global 

Health Service Partnership, the Peace Corps, 

in collaboration with Seed Global Health, 

sends trained health professionals to serve 

in one-year assignments as adjunct faculty 

in medical, nursing, and clinical officer 

training schools in partnering countries, 

helping to address critical shortages of 

qualified health professionals in areas of 

the world where they are most needed. 

Launched in March 2012, the first cohort 

of 31 medical and nursing professionals 

left for Malawi, Tanzania, and Uganda in 

July 2013. The agency is expecting to send 

42 Volunteers to these countries in FY 2015.

• Improvements to the measurement of 

Volunteer impact: The agency has made 

significant progress in diversifying and 

improving the data sources utilized to 

measure the impact of Volunteers. The 

Volunteer Reporting Tool (VRT), the 

primary platform for collecting data on 

Volunteer activities and contributions 

to project outcomes, was redesigned in 

FY 2014. The redesigned VRT has a more 

intuitive user interface and allows for 

the global aggregation and reporting of 

Volunteer activity data. The agency has 

trained staff and Volunteers in the use of the 

redesigned VRT and has developed tools to 

ensure Volunteers correctly collect data on 

the agency’s standard sector indicators. The 

new Global Counterpart Survey, launched 

in FY 2014, provides another perspective 

of the impact of Volunteers—directly 

from Volunteers’ primary work partners. 

Additionally, the agency initiated baseline 

data collection work in Kosovo which will 

inform an eventual impact evaluation of a 

new country program, and similar efforts 

are planned for expected new country 

entries and new projects in FY 2015. Lastly, 

future administrations of the new Host 

Country Staff Survey, first launched in 

FY 2014, will provide additional information 

on the impact of Volunteers from the 

perspective of host country staff who, in 

many cases, have worked for the Peace Corps 

for several years. Improvements to these 

diverse data sources provide the agency with 

a richer understanding of the successes and 

challenges of particular projects and of the 

overall impact of Volunteers.

Strategic Objective 3: Development Impact FY 2014

Status

Advance community-based development by strengthening the capacity of 

local individuals and communities, focusing on highly effective technical 

interventions, and leveraging strategic partnerships (Supports Strategic Goals 1 

and 2)

Area for 

improvement
24 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Challenges: 

• Effective site development and support:

Before Volunteers arrive in their country, 

the Peace Corps works to identify 

meaningful work opportunities and local 

partners for Volunteers and to ensure 

that work sites can support Volunteers’ 

safety, security, and medical and mental 

health needs. Effective site development is 

essential in building an environment where 

Volunteers can be successful. Historically, 

the agency has faced challenges in 

providing effective site development and 

support—Volunteer satisfaction with site 

development is typically one of the lowestranked indicators measured through the 

Annual Volunteer Survey. To improve site 

development, all regions have adopted 

regional site development and monitoring 

standards, and the agency is in the process 

of developing post-specific site development 

criteria, policies, and procedures. The 

agency is also improving counterpart and 

host family training on working effectively 

with Volunteers and is working to 

appropriately staff overseas posts to more 

effectively develop and monitor sites. 

Status: Area for improvement. Building

cross-cultural understanding between American 

and host country individuals is central to the 

Peace Corps development model. Volunteers act 

as cultural ambassadors by living and working in 

local communities and sharing their experiences 

when they return. However, to reach Volunteers’ 

full potential for contributing to local development 

and cross-cultural understanding, more progress 

is needed to ensure that recruitment and training 

practices more closely reflect recent advances in the 

study of intercultural competence. The agency is 

also working to use modern technology to increase 

direct interactions between Americans and host 

country individuals and to maintain them long after 

the Volunteer finishes his or her service in order to 

expand the agency’s cross-cultural impact.

Accomplishments:

• Launch of the Global Counterpart 

Survey: The agency formally launched the 

Global Counterpart Survey which—for the 

first time—provides the agency with the 

perspectives of the local counterparts with 

whom Volunteers work. Once the Global 

Counterpart Survey becomes a seamless 

part of regular post activities, the survey will 

provide global information on Volunteers’ 

effectiveness in contributing to local 

development and fostering cross-cultural 

understanding from the perspective of 

the host country individuals who work 

most closely with Volunteers. A detailed 

description of the new Global Counterpart 

Strategic Objective 4: Cross-Cultural Understanding FY 2014

Status

Build a deeper understanding of other cultures by developing long-lasting 

connections between American and host country individuals and communities 

(Supports Strategic Goals 1, 2, and 3)

Area for 

improvement
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 25

Management’s Discussion and Analysis

Survey may be found in the Evaluation and 

Research Section.

• The Second Annual Blog It Home 

Competition: Through programs such as 

the Blog It Home Competition, the Peace 

Corps encourages Volunteers to use social 

media and blogging to promote crosscultural understanding. This program 

highlights and celebrates Peace Corps 

Volunteers from around the world who 

use their blogs to share other cultures 

with Americans. Out of more than 

350 submissions, winners from Albania, 

Cameroon, China, Dominican Republic, 

Guinea, Senegal, Thailand, and Uganda 

were selected for their focus on using their 

blogs to increase cultural understanding. 

The winning blogs may be found at http://

w w w.peacecor ps.gov/media/for press/

press/2426/.

Challenges: 

• Training and tools to build sustainable, 

direct interactions between host 

country communities and Americans: 

The agency has traditionally promoted 

the Peace Corps’ third goal to increase 

American’s awareness and knowledge of 

other cultures through Volunteers who 

share their experiences both during and 

after their service. Through this model, 

Volunteers act as cultural windows through 

which individuals from host countries can 

catch a glimpse of American culture, while 

Volunteers’ family, friends, and colleagues 

back home can view a snapshot of life in 

another country. However, with advances in 

technology, Volunteers now have the ability 

to directly connect Americans with host 

country communities to promote mutual 

learning and understanding. The challenge 

with this new opportunity is to develop the 

tools, training, and processes for Volunteers 

to use social media and other forms of 

communication to set up and sustain 

these direct interactions. Poor internet 

connections or the lack of connectivity also 

hinders this strategy in many of the places 

where Volunteers serve. 

• Outdated intercultural training 

materials and practices: The academic 

field of intercultural studies has made great 

strides in recent years; however, the agency’s 

training materials and practices do not 

yet reflect the latest research and findings 

around recruiting, assessing, placing, 

training, and supporting Volunteers and 

staff to ensure they have the intercultural 

competence to successfully live and work 

in local communities. The agency is in the 

process of incorporating best practices from 

the intercultural field, but significant work 

remains for the agency to be a leader in the 

field.

Strategic Objective 5: Continuation of Service FY 2014

Status

Support returned Volunteers’ continuation of service by fostering a vibrant 

alumni network, providing tools and resources to ease their transition after 

service, and offering opportunities for them to share their experiences 

(Supports Strategic Goal 3)

Noteworthy 

progress
26 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Status: Noteworthy Progress. Since the 

establishment of the Office of Third Goal and 

Returned Volunteer Services in FY 2012, the 

agency has improved the career services provided 

to returned Volunteers (RPCVs) and strengthened 

relationships with independent RPCV groups to 

advance the Peace Corps mission and support 

RPCVs. The agency also continues to expand 

opportunities for RPCVs to share their experiences 

and also to improve data collection systems. 

Accomplishments:

• Expanded Career Events: In FY 2014, 

the agency held two national RPCV career 

conferences, four regional career events, 

and monthly career webinars. The agency 

also held targeted noncompetitive eligibility 

career events to connect recently-returned 

RPCVs with prospective federal employers.

• Memorandum of Understanding with 

the National Peace Corps Association: 

The Peace Corps signed a memorandum 

of understanding with the National Peace 

Corps Association—the leading nonprofit 

alumni organization that serves returned 

Volunteers and the Peace Corps community. 

The agreement advances the relationship 

between the two organizations and makes 

possible future collaboration to support 

returned Volunteers and advance the Peace 

Corps mission.

Challenges: 

• Unreliable RPCV contact information:

Currently, the agency has valid email 

addresses for approximately 50,000 

returned Volunteers—less than a quarter 

of the over 215,000 Volunteers who have 

served since 1961. The lack of reliable 

contact information inhibits the agency’s 

ability to provide career and transition 

services to RPCVs. Approximately 7,000 

new email addresses were identified 

through a postcard campaign this year, but 

more progress is needed.

Status: Noteworthy progress. The Peace Corps 

continues to increase the diversity of the Volunteer 

corps. The agency has also made strides in building 

an inclusive culture through the development of 

employee resource groups. The development of 

a new Host Country Staff Survey is additional 

evidence of the agency’s effort to be an organization 

that encourages collaboration and input from every 

individual in the Peace Corps community.

Accomplishments:

• Sustained upward trend in applicant 

diversity: The Peace Corps has made 

significant investments to ensure that 

Volunteers represent the diversity of the 

United States. Since FY 2008, the Peace 

Corps has achieved a 13 percentage point 

increase in the percentage of applications 

from individuals of minority racial 

Strategic Objective 6: Diversity and Inclusion FY 2014

Status

Actively recruit, support, and retain a diverse workforce and Volunteer corps 

and build an inclusive culture that encourages collaboration, flexibility, and 

fairness (Supports Strategic Goals 1, 2, and 3)

Noteworthy 

progress
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 27

Management’s Discussion and Analysis

Status: Area for improvement. While the agency 

has made improvements in several components of 

site development, including the creation of regional 

standards and post-specific site development 

procedures and improvements to the training of 

Volunteers’ local counterparts, more progress is 

needed to meet this objective. Sustained, long-term 

focus by the agency is required to meet the aggressive 

targets set for site development over time.

and ethnic groups. The agency also has 

continued to implement the initiative 

announced in FY 2013 that expands service 

opportunities to same-sex couples. 

• Development of Employee Resource 

Groups (ERGs): The agency first developed 

ERGs in FY 2013 to serve as a link among 

the diverse employee populations at the 

Peace Corps and build support for an open 

and inclusive organizational culture. ERGs 

are employee-driven groups supported 

by the agency. They promote networking, 

career development, and community 

service and support staff recruitment 

and skill development. They also work 

to advance the Peace Corps’ goals of 

building cross-cultural understanding. In 

FY 2014, two new ERGs were established: 

a group for veterans, and Lotus Corps, 

the Asian-American and Pacific Islander 

group, joining the existing ERGs serving 

the following areas of interest: AfricanAmerican, Hispanic, LGBTQA (lesbian, 

gay, bisexual, transgender, queer, and ally); 

women, mindfulness, and Jewish.

Challenges: 

• Support for a diverse Volunteer corps: 

As the diversity of the Peace Corps 

increases, the agency will work to continue 

to identify how best to support the unique 

needs of individuals with different and 

varied requirements throughout the 

application process and during and after 

service. For example, retaining individuals 

from minority racial and ethnic groups 

throughout the application process has 

been a challenge. In FY 2014, 33 percent 

of applicants were from these racial and 

ethnic groups, compared to 25 percent of 

the Volunteer population. The agency has 

employed several strategies to address 

this issue, including partnering with 

colleges and universities through the Peace 

Corps Prep program to better prepare 

undergraduate students for international 

service, utilizing peer-to-peer networking 

on college campuses to recruit and support 

minority candidates, and working with the 

Department of Education, the Consumer 

Financial Protection Bureau, Congress, and 

others to mitigate the barriers to service 

presented by student loans.

Strategic Objective 7: Site Development FY 2014

Status

Establish an environment conducive to Volunteer success through an 

integrated approach to developing effective projects, preparing work sites, and 

successfully collaborating with local partners (Supports Strategic Goals 1 and 2)

Area for 

improvement
28 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Accomplishments:

• Implementation of site development 

standards and procedures: All regions 

have site development standards and 

procedures in place to ensure a consistent 

level of site development support across 

each of the three regions. Each region 

is now working to develop post-specific 

site development criteria, policies, and 

procedures.

Challenges: 

• Inadequate staffing for site development, 

monitoring, and support: The agency’s 

strategies to improve site development 

focus primarily on increasing the number 

of visits by Peace Corps staff to Volunteer 

sites, conducting additional training 

with counterparts and host families, and 

providing more feedback and support to 

Volunteers. These strategies all require 

additional staff time. The agency is working 

to appropriately staff overseas posts to 

accomplish site development and other 

goals. The agency is also experimenting 

with alternative methods of providing site 

development support, including clustering 

Volunteers and utilizing third-year 

Volunteers during the site selection process.

• Volunteer housing and work site 

constraints: The selection of Volunteer 

sites is largely determined by housing 

options, communication availability, and 

adequate transportation—all critically 

important in ensuring the safety, security, 

and health of the Volunteers. However, in 

some cases, these criteria can constrain 

the agency’s ability to place Volunteers in 

communities with the greatest need or with 

local partners who are the most committed 

to collaborating with the Peace Corps.

Status: Area for improvement. In response to the 

2010 Comprehensive Agency Assessment (http://

files.peacecorps.gov/multimedia/pdf/opengov/

PC_Comprehensive_Agency_Assessment.pdf), the 

Peace Corps has made great strides in standardizing 

Volunteers’ pre-service training through the 

Focus-In/Train-Up strategy. However, more 

progress is needed to standardize the training topics 

that are delivered throughout Volunteers’ entire 

service and to ensure adequate time for technical 

and language training. The development of terminal 

learning objectives is in process and will allow the 

agency to better evaluate individual Volunteer 

learning as well as the impact of the standardization 

of training materials.

Accomplishments:

• Launch of Global Learning Standards: 

Building on the continued development of 

Strategic Objective 8: Train-Up FY 2014

Status

Develop a highly-effective Volunteer corps through a continuum of learning 

throughout service (Supports Strategic Goals 1 and 2)

Area for 

improvement
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 29

Management’s Discussion and Analysis

standardized Volunteer training packages, 

the agency took a significant step in 

improving the effectiveness of Volunteer 

training by launching a Global Learning 

Standards program in FY 2014. The 

program includes an array of competencies 

required for Volunteers to be safe, healthy, 

and productive as well as assessment 

mechanisms to ensure Volunteers are 

prepared for service. Posts are in the process 

of phasing in terminal learning objectives 

and a trainee assessment portfolio for all 

global core training content. Starting in 

FY 2015, posts will begin using this approach 

for sector-based learning objectives.

• Development of the TEFL certificate 

program pilot: The agency initiated a pilot 

program in FY 2014 to provide Englishteaching Volunteers with Teaching English 

as a Foreign Language (TEFL) certificates 

upon the completion of their service. This 

will serve to attract individuals to Volunteer 

service, build counterpart capacity and 

student achievement, and provide enhanced 

career opportunities for returning 

Volunteers. The 30-month pilot is being 

implemented at three posts—Armenia, 

Madagascar, and Nicaragua—and includes 

approximately 100 Volunteers. Based on 

the results of the pilot, the agency expects to 

gradually expand the program over the next 

few years to all posts with English-teaching 

programs.

Challenges: 

• Increase in required Volunteer training 

topics: Due to the recent safety, security, 

and health reforms and new legislation, the 

number of topics required to be covered 

during Volunteer pre-service training has 

significantly increased. As the length of preservice training has not changed with these 

new requirements, the number of training 

hours available for language and technical 

training—topics critical for the safety and 

success of Volunteers—has declined. To 

accommodate the new required training 

topics and to improve language and 

technical training, the agency will likely 

need to increase the length of pre-service 

training—a significant investment.

• The need to focus on the full continuum 

of learning: With the pressures of limited 

time during pre-service training, it is 

increasingly necessary to view Volunteer 

learning as a continuum from invitation 

(pre-departure) through close of service. 

This will require the agency to consider 

new methods of training, including 

self-directed learning modules and other 

distance-learning approaches. The agency 

has made progress in improving the 

coordination of Volunteer training, which is 

expected to enhance a culture of continuous 

Volunteer learning.
30 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Status: Area for improvement. The Peace Corps 

is in the process of developing the infrastructure 

necessary to implement an agencywide staff 

development program. The agency is also working 

with Congress to develop a legislative solution to 

the human capital and knowledge management 

challenges posed by the five-year rule (FYR), the 

unique law that limits the majority of U.S.-based and 

American overseas staff to five-year appointments. 

As the agency is in the initial stages of multiyear 

strategies to cultivate a high-performing learning 

organization, more time is needed to reach this 

strategic objective. 

Accomplishments:

• Initiation of an agencywide staff training 

program: The agency is in the initial stages 

of multiyear strategies to centralize and 

coordinate staff training, including the 

development of a learning management 

system, an assessment of agency training 

needs, and the identification of the 

competencies required for individual 

positions. These strategies will provide the 

agency with a clearer picture of the full array 

of training that currently occurs across 

the agency as well as the training needs 

of individuals and offices. As a result, the 

agency can better meet staff development 

needs and reduce duplication of training 

efforts.

Challenges: 

• High staff turnover: The estimated 

average tenure (calculated using the 

median) for U.S. direct hire staff 

members who have departed since 

FY 2012 is 3.5 years. High staff turnover 

results in significant human capital costs 

and contributes to poor institutional 

memory. The agency has worked to 

reduce the rate of staff turnover by placing 

employees on five-year appointments 

rather than two successive 2.5-year terms 

as well as additional management reforms. 

However, the agency is also considering 

seeking a legislative fix to preserve, but 

modify, the five-year rule to further address 

these challenges.

Strategic Objective 9: High-Performing Learning Organization FY 2014

Status

Cultivate a high-performing learning organization by investing in professional 

development for staff, improving staff retention, and strengthening 

institutional memory (Supports Strategic Goals 1, 2, and 3)

Area for 

improvement

Strategic Objective 10: Global Connectivity FY 2014

Status

Enable seamless communication and collaboration for all Volunteers and 

staff by modernizing and integrating information technology systems and 

leveraging the innovation of Volunteers and staff in the field (Supports 

Strategic Goals 1, 2, and 3)

Area for 

improvement
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 31

Management’s Discussion and Analysis

Status: Area for improvement. The Peace Corps 

is on the cusp of major advances in modernizing 

and integrating information technology (IT) 

systems; however, more progress is needed to fully 

enable seamless communication and collaboration 

for all Volunteers and staff. The agency has 

committed to utilizing more open and flexible 

technology applications to respond to changing 

requirements and to fully leverage the innovation 

of Volunteers and staff in the field. The agency has 

also made progress in identifying and retiring legacy 

applications and updating PCLive—the Peace Corps’ 

knowledge-sharing platform. Additionally, the 

agency is undertaking an agencywide IT assessment 

to set priorities and strategies for modernizing and 

integrating core IT systems. 

Accomplishments:

• Improvements to the agency’s knowledge 

management platform: In FY 2014, the 

agency updated PCLive—the Peace Corps’ 

knowledge management platform—to a 

robust technology that is more closely 

aligned with the knowledge-sharing and 

collaboration needs of staff and Volunteers. 

New servers were installed in spring 2014 

and tested during the summer. The new 

platform was opened for beta testing in 

August 2014. During the testing phase, the 

agency continued to enhance the platform 

and add content. The new platform will be 

fully launched in FY 2015.

• Initiation of the cloud email and 

collaboration tools pilot: The Peace Corps 

is exploring a new agencywide collaboration 

and email solution from Google Apps 

for Government in partnership with the 

General Services Administration. For 

90 days, beginning in September 2014, the 

agency will be conducting a pilot program of 

the Google product suite—including Google 

Mail, Google Drive, Google Groups, and 

more—to determine if the platform meets 

the agency’s need for a mobile-friendly and 

flexible communication and collaboration 

platform for staff and Volunteers. A new, 

cloud-based platform will enable staff and 

Volunteers to more easily access email and 

create and share documents, collaborate 

in real time, enhance productivity, and 

increase flexibility and autonomy.

Challenges: 

• Operational instability and low 

bandwidth at overseas posts: The Peace 

Corps operates in some areas of the world 

that are challenged by restricted or sporadic 

internet connectivity. This often results 

in low bandwidth, power disruptions, and 

other challenges. With the agency’s push 

to implement modern cloud-based IT 

systems that require robust and reliable 

internet connection, implementation of 

these solutions at overseas posts with low 

bandwidth remains a challenge.

Strategic Objective 11: Measurement for Results FY 2014

Status

Advance the agency’s ability to measure progress, improve performance, 

and demonstrate impact through integrated monitoring, reporting, and 

evaluation practices (Supports Strategic Goals 1, 2, and 3)

Noteworthy 

progress
32 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Status: Noteworthy progress. The agency is 

continuing to develop its monitoring, reporting, and 

evaluation capacity. In FY 2014, the Peace Corps 

improved existing data sources such as the Annual 

Volunteer Survey and the Volunteer Reporting Tool 

to improve data quality. The agency developed new 

surveys, including the Global Counterpart Survey 

and the Host Country Staff Survey, to provide 

additional perspectives on the impact of Volunteers 

and agency operations. The agency also instituted 

a new process for the collection of baseline data for 

new country entries and new projects to inform 

future impact evaluations. 

Accomplishments:

• Baseline data collection in Kosovo: 

The first Volunteers arrived in Kosovo in

June 2014, providing the agency with a 

unique opportunity to collect baseline data 

in a country where Peace Corps Volunteers 

have never served. Agency staff collected 

data on the general state of the Kosovar 

education system prior to the start of 

Volunteers’ work, teacher proficiency in 

English and student-centered instruction 

prior to the integration of Volunteers into 

their schools, and the English proficiency 

of students before the end of the first term 

of the school year. Data were also collected 

on community members’ perceptions 

of Americans. Data were collected in 

communities where Volunteers are 

expected to serve as well as communities 

that do not yet have a Volunteer. This 

baseline data will inform an eventual 

quasi-experimental impact evaluation of 

the program in Kosovo—a study that will 

more clearly demonstrate the impact of 

Volunteers.

• Launch of the Host Country Staff Survey: 

In August 2014, the agency launched 

the Host Country Staff Survey—the first 

agencywide survey to systematically tap 

into the enormous wealth of experience 

of host country staff. Host country staff 

represent a large percentage of Peace 

Corps staff (over 90 percent of staff at 

posts and approximately two-thirds of staff 

worldwide) and perform a variety of duties, 

including managing Volunteer programs; 

ensuring the safety, security, and health 

of Volunteers; teaching local languages; 

serving as cultural facilitators; and 

performing administrative and financial 

work. They are critically important to the 

success of overseas posts and Volunteers 

and, as they are not subject to the five-year 

rule, they often serve much longer than 

American staff. The agency is using the 

results of the survey to improve both post 

operations and the support it provides to 

this important segment of Peace Corps 

staff.

Challenges: 

• Coordination of monitoring, reporting, 

and evaluation practices worldwide: The 

demand for data and evidence to inform 

policy, program, and budget decisions has 

never been higher at the Peace Corps. As 

a result, several offices and overseas posts 

have developed new monitoring, reporting, 

and evaluation (MRE) practices. The 

challenges are to ensure that these new 

practices reinforce each other instead of 

duplicating other efforts, that they are 

sufficiently rigorous to result in actionable 

evidence, and that staff have the necessary 

time and technical capacity to collect, 

analyze, and report the data. The agency 

has convened an internal working group 

to address these challenges and better 

coordinate MRE practices worldwide.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 33

Management’s Discussion and Analysis

Since the beginning of the Obama administration, 

the Peace Corps has been in a period of revitalization 

and reform unlike any since the founding of the 

agency. During this time, the agency has embraced 

change to improve Volunteer support, focus and 

standardize Volunteer programming and training, 

and strengthen operations to enhance the impact of 

Volunteers around the world.

Looking forward, the Peace Corps is positioned to 

build on this strong foundation to address future 

opportunities and challenges with the same sense 

of purpose, idealism, energy, and innovation that 

turned the Peace Corps from a bold experiment in 

1961 into a global leader in sustainable, grassroots 

development today. 

Through the goals, objectives, and strategies 

outlined in the FY 2014–18 Strategic Plan, the Peace 

Corps will address and leverage the conditions, 

opportunities, and challenges described below. The 

Office of Inspector General’s assessment of the Peace 

Corps’ management and performance challenges 

may be found in the Other Information Section.

Volunteer safety, security, and health in

an increasingly complex world

As Volunteers serve worldwide, sometimes in 

very remote areas, health and security risks are an 

inherent part of service. Additionally, Volunteers 

live and work in countries that are often vulnerable 

to unstable security conditions, inadequate health 

care, and political and economic conflict. A major 

challenge for the Peace Corps is to ensure the 

well-being of Volunteers while still maintaining a 

presence in areas of the world that could benefit the 

most from the work of Volunteers.

The evacuation of Volunteers from Ukraine in 

February 2014 is an example of the agency’s 

response to a deteriorating security situation. Once 

the decision was made that conditions were no longer 

safe for Volunteers, the agency safely evacuated 

232 Volunteers and hosted transition conferences to 

support Volunteers returning to the U.S. For several 

months after the evacuation, the staff at the Ukraine 

post continued to share updates with the returned 

Volunteers. Some Volunteers continue projectrelated work with their communities on projects 

online.

At all Peace Corps posts, the agency employs rigorous 

prevention and response systems to ensure the 

safety, security, and health of Volunteers. The agency 

works to reduce risks for Volunteers and respond 

effectively and compassionately to those who are 

victims of crime, including sexual assault. The full 

implementation of the Kate Puzey Peace Corps 

Volunteer Protection Act of 2011 will continue to be 

a major focus for the agency. Additional information 

Looking Forward

“I envision the Peace Corps as a dynamic, forward-leaning 

champion for international service. I envision a Peace 

Corps that is defined by its energy, innovation, and impact.”

-Director Hessler-Radelet
34 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

and continued updates on the agency’s efforts to 

ensure the well-being of Volunteers may be found at 

www.peacecorps.gov/safety.

Competition for talented Americans interested 

in public service

The majority of Peace Corps applicants are recent 

college graduates who expect transparency, speed, 

and choice when making major life decisions. Until 

recently, the application process to become a Peace 

Corps Volunteer did not adequately meet any of 

these criteria. At the same time, other opportunities 

available to individuals interested in service have 

expanded dramatically. These two factors resulted 

in increased competition for talented individuals 

interested in public service. 

The Peace Corps responded in a bold fashion to this 

challenge through a major overhaul of its application 

and placement system in FY 2014. As a result of 

these historic changes, applicants can now browse 

open Peace Corps assignments on the Peace Corps 

website and choose the programs and countries to 

which they want to apply. The application is much 

shorter, and applicants are provided information 

on when they can expect to receive an invitation to 

serve. The agency also initiated new and proactive 

outreach and recruitment methods to attract more 

individuals to Peace Corps service, including a focus 

on diverse populations to ensure the Volunteer corps 

fully reflects the diversity of the United States. 

In announcing these changes, Director HesslerRadelet said, “A modernized, flexible application 

and placement system will help Peace Corps recruit 

Americans who are not just interested in imagining a 

better world, but in rolling up their sleeves and doing 

something about it.”

Effective Volunteer programming, training, and 

support to strengthen development impact

Every day, thousands of Volunteers around 

the world work with counterparts and other 

community members to improve the lives of local 

people. Volunteers’ contributions to host country 

development are unique—they are communitybased and rooted in strengthening the capacity 

of local communities, organizations, and people. 

As Volunteers often complete this work in remote 

areas and without the day-to-day supervision of 

Peace Corps staff, the agency has a responsibility 

to properly place, train, and support Volunteers to 

enhance their development impact and ensure their 

well-being. 

As the result of recent reforms, the agency has 

standardized Volunteer training, reduced the 

number of Volunteer projects to focus on those that 

utilize the most effective technical interventions, 

developed regional site development standards, 

and emphasized the importance of providing 

timely and quality feedback to Volunteers on their 

work. Challenges remain in ensuring that overseas 

posts are staffed appropriately to meet the agency’s 

ambitious site development and monitoring goals 

and in providing training and support beyond preservice training throughout Volunteers’ service.

The agency plans to continue improving Volunteer 

programming, training, and support through 

additional revisions and enhancements to technical 

training, an increase in Volunteer language testing 

at mid-service and close of service, the development 

of post-specific site development and Volunteer 

feedback policies and procedures, and new staffing 

investments at overseas posts to support site 

development, monitoring, and Volunteer support 

priorities. 

Strategic partnerships and

whole-of-government initiatives

Collaboration with other government agencies and 

strategic partners brings together a wide array of 

public and private sector actors to jointly tackle 

complex development challenges and is critical to 

advancing the Peace Corps mission. The Peace Corps 

actively participates in Presidential and whole-of-
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 35

Management’s Discussion and Analysis

government initiatives including the Energy and 

Climate Partnership of the Americas, Feed the 

Future, the Global Health Initiative, the President’s 

Emergency Plan for AIDS Relief (PEPFAR), the 

President’s Malaria Initiative, and Saving Mothers, 

Giving Life. Through these mutually beneficial 

partnerships, the Peace Corps expands the reach 

of both its strategic partners and its Volunteers by 

leveraging training and programmatic resources 

and contributing to common development goals at 

the local level.

Moving forward, the agency will work to further 

strengthen its monitoring, reporting, and evaluation 

practices to effectively identify and share best 

practices, improve evidence-based performance 

management, demonstrate development impact, 

and ensure tangible improvements in the lives of 

individuals in the communities where Volunteers 

live and work. These measures will add significant 

value to the agency’s strategic partnerships. The 

agency will continue to explore opportunities to 

expand new, highly specialized service models 

that demonstrate an effective use of partnerships 

and document sustainable development results. 

Strengthening and creating new strategic 

partnerships with diverse public and private sector 

actors will remain a key agency focus. 

Secure and modern IT infrastructure

and systems 

The world is more interconnected than ever before, 

and modern and reliable IT systems are required 

for effective communication and collaboration for 

any organization, particularly one with a global 

reach like the Peace Corps. As the agency operates 

in many areas of the world with vulnerable IT 

infrastructures, operational challenges such as poor 

internet connections constrain the agency’s ability 

to fully modernize its IT systems. The transition 

from aging legacy systems to new technologies is 

another complex undertaking that requires agency 

commitment and resources.

To develop a comprehensive strategy for addressing 

these challenges, the agency initiated an agencywide 

technology assessment of the Peace Corps’ IT 

strategy and operations in FY 2014. The assessment 

is being conducted by a team of external experts 

and will identify how modifications to the agency’s 

staffing structure, operations, and culture could 

contribute to the implementation of a new, forwardlooking IT strategy for supporting staff and 

Volunteers with the most effective technology. The 

assessment team will also identify how best to align 

IT resource decisions with the new strategy.

The agency also continues to prioritize IT security 

to ensure the agency’s information, operations, 

and assets are appropriately protected. In the past 

year, the agency successfully implemented a risk 

management framework and organization risk 

management board so that system security issues 

are correctly addressed at the agency’s executive 

level. In FY 2015, the board will address security 

risks at the entity or business process levels. The 

agency also completed three of seven Federal 

Information Security Management Act (FISMA) 

inventory systems compliance reviews and audits. 

Moving forward, the agency will complete the four 

remaining FISMA reviews and move from a systemlevel security focus to enterprise risk management 

continuous monitoring and on-going assessment 

and authorization processes.

Staff turnover and loss of institutional memory 

resulting from the five-year rule

The five-year rule (FYR)—signed into law in 1965—

limits the employment of Peace Corps U.S. direct hire 

staff to five-year appointments in an effort to ensure 

a constant influx of fresh ideas and innovation. 

However, the FYR also produces significant human 

capital and knowledge management challenges, 

including the loss of institutional memory. For the 

Peace Corps employees who have separated since 

FY 2012, the average tenure was an estimated 

3.5 years. Excessive turnover limits the agency’s 

ability to recruit and retain high-performing staff, 
36 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

manage information and knowledge critical to 

the effective operation of the agency, and recruit 

individuals from highly specialized fields. 

High staff turnover at the Peace Corps also has a 

significant financial cost. In a 2012 report on the 

effects of the FYR on agency operations, the Office 

of Inspector General (OIG) estimated that over a 

five-year period, excessive turnover due to the FYR 

resulted in between $12.6 million and $15.5 million 

out of $20.7 million in total turnover management 

costs. In the estimate, OIG did not include costs 

that are likely significant but are more difficult 

to quantify, including the loss of expertise when 

staff leave, reductions in productivity, or gaps in 

institutional memory. 

The agency has taken steps to mitigate the negative 

effects of the FYR such as implementing a change 

in policy to allow for 60-month appointments 

rather than 30-month appointments in an effort to 

attract and retain highly skilled professionals as 

well as other management reforms. The agency is 

considering pursuing legislative modifications to 

preserve, but modify, the five-year rule to address 

these major management challenges.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 37

Management’s Discussion and Analysis

Overview of Financial Position

An unmodified (clean) audit opinion was achieved 

on the FY 2014 financial statements. This analysis 

presents a summary of the agency’s financial 

position and results of operations, and addresses 

the relevance of major changes in the types and/or 

amounts of assets, liabilities, costs, and obligations. 

Overall, the funding position of the Peace Corps 

improved this year as the required sequestration 

budget cuts in effect in FY 2013 were not in place in 

FY 2014. 

The Peace Corps’ principal financial statements 

include the Balance Sheet, Statement of Net Cost, 

Statement of Changes in Net Position, and Statement 

of Budgetary Resources. Financial statements and 

notes are included in the Financial Section of this 

report.

Agency funds primarily consist of appropriated 

funding administered by the U.S. Department 

of Treasury and appropriated by Congress in 

the amount of $379 million for FY 2014. This 

was an increase of $23 million from the FY 2013 

appropriation of slightly more than $356 million. 

In FY 2014, Budgetary Resources were $479.5 

million which compares favorably with the $447.8 

million Budgetary Resources in FY 2013. Budgetary 

Resources consist mainly of appropriated funds 

plus the available unobligated balance of prior 

year appropriated funds, recoveries of prior year 

obligations, and the spending authority from 

offsetting collections. (Offsetting collections 

are primarily the reimbursable work the agency 

performs on behalf of other federal agencies such as 

U.S. Agency for International Development and its 

$16.9 million for the nation’s Feed the Future, Global 

Education, and other initiatives). 

The agency has two years in which to obligate 

appropriated funds and another five years in which 

to complete the payout process for those funds. The 

Peace Corps operates as one program with the single 

purpose of providing trained Volunteers to host 

countries to promote world peace and friendship. 

The agency enhances the use of performance and cost 

information in budgetary decision making through 

the Integrated Planning and Budget System, where 

posts and headquarters offices develop strategic 

plans and resource requests to execute goals, as 

well as the annual strategic review, which provides 

performance information as an input to the budget 

formulation process. 

The following table provides a comparative summary 

of the major financial activities in FY 2014 and 

FY 2013. 

Analysis of Financial Statements
38 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Analysis of Financial Results

ASSETS – WHAT WE OWN AND MANAGE. 

Assets are the amount of future economic benefits 

owned or managed by the Peace Corps to achieve 

its mission. Total Assets were $254.7 million as 

of September 30, 2014 on the Balance Sheet. This

represents an increase of $27.4 million over 

the assets in FY 2013 of $227.3 million. The primary 

reason for the increase in assets was due to an 

increase in the Fund Balance with Treasury because 

of the higher level of appropriation in FY 2014.

The most significant assets are the Fund Balance 

with Treasury and Property, Plant, and Equipment 

(PP&E) which represent 83 percent and 14 percent 

as of September 30, 2014, respectively. The Fund 

Balance with Treasury consists of cash appropriated 

by Congress and held in U.S. Department of 

Treasury’s accounts that are accessible by the Peace 

Corps to pay for agency obligations incurred. PP&E 

consists of tangible assets owned by the agency, 

reported by major class in detail in Note 5, General 

Property, Plant, and Equipment, Net. 

The Fund Balance with Treasury at $211.4 million 

in FY 2014 increased by $22.7 million primarily due 

to a $19 million rescission of appropriated funds in 

FY 2013 and a $4 million increase in appropriated 

funding. PP&E increased by $4.6 million as a 

result of newly acquired vehicles and IT hardware 

purchases.

1 

Net Financial Condition FY 2014 FY 2013

Fund Balance with Treasury $ 211,369 $ 188,687

Accounts Receivable 3,092 3,166

PP&E 34,556 29,987

Prepaid Volunteer Living Allowances 1,836 2,010

Other Assets 3,890 3,440

Total Assets $ 254,743 $ 227,290

Accounts Payable 9,883 11,961

Employee Benefits 149,107 153,397

Unfunded FECA Liability 33,348 32,297

Unfunded Annual Leave 10,289 9,755

Other Employment Related 3,586 2,492

Non-Entity Funds 20,225 23,400

FSN and PSC Severance Liability 25,849 24,643

Other Liabilities 273 1,159

Total Liabilities $ 252,560 $ 259,104

Unexpended Appropriations 158,343 129,818

Cumulative Results of Operations (156,160) (161,632)

Total Net Position $ 2,183 $ (31,814)

Net Cost of Operations $ 354,462 $ 371,842

Budgetary Resources $ 479,545 $ 447,801

Changes in Financial Position from FY 2013 to FY 2014

(In Thousands)
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 39

Management’s Discussion and Analysis

Assets by type are shown in the chart below:

LIABILITIES – WHAT WE OWE. Liabilities are 

the amounts owed by the Peace Corps. 

As of September 30, 2014, total liabilities of 

$252.6 million were shown on the Balance 

Sheet. This is a decrease of $6.5 million from 

$259.1 million in FY 2013. This decrease was 

primarily due to a $4.3 million decrease in Federal 

Employee and Veterans Benefits and a $3.2 million 

decrease in the Volunteer readjustment allowance.

Liabilities by type are shown in the chart below:

ENDING NET POSITION – WHAT WE HAVE 

DONE OVER TIME. Net Position represents the 

difference between the Assets and the Liabilities 

on the Balance Sheet. The agency’s Net Position 

increased in FY 2014 to $2.2 million from its 

 -$31.8 million in FY 2013. 

NET COST – RESULTS OF OPERATIONS. The 

Net Cost of Operations decreased in FY 2014 from 

the FY 2013 position of $371.8 million to $354.5. 

The decrease was due to lower rate of operating 

expenses for payroll and benefit costs.

Limitations of the Financial Statements 

The principal financial statements have been 

prepared to report the financial position and 

results of operations of the Peace Corps, pursuant 

to the requirements of 31 U.S.C. 3515 (b). While the 

statements have been prepared from the entity’s 

books and records in accordance with generally 

accepted accounting principles for federal entities 

and the formats prescribed by the Office of 

Management and Budget (OMB), the statements 

are in addition to the financial reports used to 

monitor and control budgetary resources, which 

are prepared from the same books and records. The 

statements should be read with the realization that 

they are for a component of the U.S. government, a 

sovereign entity.

Other Assets

$3,890

Fund Balance 

with Treasury

$211,369

FY 2014 Assets

($ in Thousands)

Accounts 

Receivable

$3,092

PP&E

$34,556

Prepaid Volunteer 

Living Allowances 

$1,836

($ in Thousands)

Accounts

Payable

$9,883

Other

$273

FSN/PSC Severance

$25,849

Non-Entity Funds

$20,225

Other Employment 

Related

$3,586

Annual Leave $10,289

Unfunded

FECA Liability

$33,348

FY 2014 Liabilities
40 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Management Assurances

This section addresses the Peace Corps’ compliance 

with the Federal Managers’ Financial Integrity Act 

(FMFIA) of 1982 (P. L. 97-255) and presents the 

financial management systems strategy and other 

controls. 

Federal Managers’ Financial Integrity Act

The FMFIA requires the heads of agencies to 

annually assess and report on the adequacy of 

internal controls that protect the integrity of federal 

programs. In accordance with FMFIA, agencies are 

required to establish accounting and administrative 

controls to include program, operational, and 

administrative areas, in addition to accounting and 

financial management, and requires standards to 

ensure the prompt resolution of all audit findings. 

The FMFIA requires reasonable assurances that 

(i) obligations and costs are in compliance with 

applicable law; (ii) funds, property, and other assets 

are safeguarded against waste, loss, unauthorized 

use, or misappropriation; and (iii) revenues and 

expenditures applicable to agency operations are 

properly recorded and accounted for to permit the 

preparation of accounts and reliable financial and 

statistical reports and to maintain accountability 

over the assets. The agency’s Qualified Assurance 

Statement on the adequacy of internal controls over 

financial reporting (FMFIA § 2) and on conformance 

of financial systems with governmentwide standards 

(FMFIA § 4) is shown below in the FY 2014 FMFIA 

Qualified Assurance Statement.

Internal Control Guidance

Guidance for implementing the FMFIA (31 U.S.C. 

3512) is provided through OMB Circular A-123, 

Management’s Responsibility for Internal Control, 

which further defines management’s responsibility 

for internal control in federal agencies, including the 

financial management systems. Within the agency, 

Peace Corps Manual Section 784, Internal Control 

System, sets out the policies and procedures for 

establishing, assessing, correcting, and reporting on 

internal control in order to achieve the objectives of 

effective and efficient operations; reliable financial 

reporting; and compliance with applicable laws 

and regulations. The safeguarding of assets is a 

subcomponent of each objective above.

Internal Control Operations 

The agency achieved an unmodified (clean) audit 

opinion on the financial statements during the 

FY 2014 financial statement audit. Legal compliance 

was addressed through auditor testing of selected 

laws and regulations and no material weaknesses 

were identified. There were, though, three instances 

of noncompliance with laws and regulations 

identified and one nonconformance with financial 

management system requirements for the Federal 

Information Security Management Act of 2002. See 

Appendix 1. 

The Peace Corps conducted its annual assessment 

on the adequacy of internal controls, and the 

FY 2014 Qualified Assurance Statement is supported 

by department and office heads assurance statements 

of compliance with effective internal controls 

throughout the agency as of September 30, 2014. 

Agency managers are responsible for designing, 

implementing, and monitoring internal controls 

(proper organization, policies, and procedures) in 

their areas. Monitoring the effectiveness of internal 

control occurs in the normal course of conducting 

agency business over the course of each year. Annual 

assurance statements are based on information 

gathered from various sources including the 

managers’ personal knowledge of day-to-day 

operations and existing controls, self-assessments, 

senior leadership meetings, audits of financial 

statements, Inspector General audits, reports, 

Analysis of Systems, Controls, and Legal Compliance
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 41

Management’s Discussion and Analysis

reviews, investigations, and evaluations. Agency 

managers’ reasonable assurances of compliance are 

further supported by risk assessments performed 

by department and office heads, following reviews 

of operations in their area where no material 

weaknesses were identified. The FY 2014 risk 

assessments, however, did identify weaknesses of 

lesser severity than material weaknesses in a few 

areas and those are being monitored closely within 

the agency.

The material weakness in financial management 

analysis and reporting identified during the FY 2013 

financial statement audit was resolved during this 

fiscal year. Two of the three significant deficiencies 

in internal control identified in that audit, however, 

were not resolved. Only the Accounts Payable Accrual 

Significant Deficiency was successfully resolved. 

The significant deficiencies that remain open are 

Property, Plant, and Equipment (Repeat Condition) 

and Information Technology Security (Repeat 

Condition). Resolution of the Property, Plant, 

and Equipment (PP&E) Significant Deficiency is 

expected during FY 2016 when full implementation 

of the newly acquired asset management system 

occurs. Information Technology Security corrective 

actions this year included securing a centrally 

located federal repository for Plan of Action and 

Milestones mitigation and purchasing AlienVault 

Security Information and Event Management 

(SIEM) solution for continuous monitoring of the 

EMA posts.

Overall, the agency’s internal control program 

is designed to ensure compliance with the goals, 

objectives, and requirements of the FMFIA and 

other federal regulations.

Improper Payments Information Act

As a small agency with only one program, the Peace 

Corps has no activities that are risk-susceptible to 

the threshold amounts in OMB Circular A-123, 

Appendix C, Requirements for Effective Management 

and Remediation of Improper Payments. This 

circular implements the requirements of the 

Improper Payments Elimination and Recovery Act 

of 2010 which amended the Improper Payments 

Information Act of 2002. Significant improper 

payments are defined as gross annual improper 

payments exceeding both 1.5 percent of program 

outlays and $10 million of all program or activity 

made during the fiscal year reported or $100 million 

(regardless of the improper payment percentage of 

total program outlays). While not rising to the level 

of the improper payment thresholds above, agency 

payments were reviewed during FY 2014 based on 

different dollar values, and those payments in the 

amount of $250,000 and above were subjected 

to an extensive review through a semiannual 

system-generated report. Further, the Peace Corps 

is a full participant in the Treasury’s “Do Not Pay” 

program operating through the Treasury Do Not 

Pay Business Center. Payees under consideration 

for payment are reviewed for eligibility through 

the pre-award component of the business center, 

then payments are re-verified in the pre-payment 

component, followed by post-payment data 

matching reviews. 

Debt Management Controls 

The Peace Corps manages a limited amount of 

debt under the provisions of the Debt Collection 

Improvement Act of 1996, OMB Circular 

A-129, Policies for Federal Credit Programs 

and Non-Tax Receivables, the Controller Alert, 

Improving Collection of Delinquent Debt issued

January 4, 2013, and other laws. During FY 2014, 

the agency wrote off delinquent debt older than two 

years in the amount of $7.4 thousand and submitted 

quarterly reports through the Treasury Report on 

Receivables and Debt Collection. 

Financial Management Systems Strategy

During FY 2014, Peace Corps upgraded and 

implemented a number of changes to its Oracle 

financial management system, Odyssey, required 

under Treasury’s Governmentwide Accounting 
42 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Management’s Discussion and Analysis

Initiative. By FY 2015, Treasury’s single data 

collection system will provide for more consistent 

and more complete financial data from all reporting 

agencies and will eliminate many manual reports. 

During the first phase, the agency converted to 

a monthly automated submission of the detailed 

trial balance to the Governmentwide Treasury 

Account Symbol Adjusted Trial Balance System, 

replacing the previous FACTS II (Federal Agencies’ 

Centralized Trial-Balance System II) reporting. 

By the third quarter in FY 2014, the Peace Corps 

implemented changes to its processing of Collections 

and Intra-governmental Payment and Collection 

System charges to include all of the required data 

fields for Treasury’s centralized reporting. Lastly, 

the agency converted its Treasury payment files to 

the new Payment Automation Manager System and 

implemented the required changes to the Secure 

Payment System. By the end of the fiscal year, 

the Peace Corps became a Treasury-certified full 

CARS (Central Accounting and Reporting System) 

reporter.

An upgrade to Hyperion Planning, the agency’s 

budget formulation and analysis software 

application, was also completed in the third 

quarter of the fiscal year. The upgraded system 

is fully integrated with the agency’s upgraded IT 

infrastructure components and expedites data 

entry and reporting. 

During the fourth quarter of the fiscal year, the 

Peace Corps awarded a contract for the procurement 

and implementation of a new asset management 

system. This new system will replace the current 

Bar Tracks system used by Peace Corps offices 

worldwide. This new system will eliminate manual 

asset input, provide better asset tracking, and create 

more functionality, including integration with the 

financial system Odyssey and with the Office of 

the Chief Information Officer’s software tracking 

systems. The system implementation, which 

involves several organizations, is being coordinated 

by the Office of the Chief Financial Officer with a 

phased rollout expected in FY 2015. 

Also in the fourth quarter of FY 2014, the agency 

signed an Interagency Agreement with its payroll 

service center, the National Finance Center, for 

the procurement and implementation of a new 

timekeeping system. The new system, WebTA, 

will track staff time related to capital projects and 

capture the associated payroll data in Odyssey, the 

financial system. WebTA is expected to be launched 

by the third quarter of FY 2015.

The financial systems changes put in place to 

become a CARS reporter and the implementation of 

the asset management and the timekeeping systems 

will strengthen financial reporting and internal 

control agencywide.

The FMFIA Qualified Management Assurance 

Statement that follows is consistent with the 

FY 2014 financial statement audit report.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 43

Management’s Discussion and Analysis

 FY 2014 FMFIA Qualified Assurance Statement

The Peace Corps assessed the effectiveness of internal control to support effective and efficient 

operations, reliable financial reporting, and compliance with applicable laws and regulations in 

accordance with the Federal Managers’ Financial Integrity Act (FMFIA) of 1982 Section 2 and OMB 

Circular A-123. Based on this assessment, the Peace Corps can provide reasonable assurance for

FY 2014 that its internal control over the effectiveness and efficiency of operations and financial 

reporting was operating effectively and no material weaknesses were found in the design or operation of 

the internal controls. Three instances, though, of noncompliance with applicable laws and regulations 

were identified. 

The Peace Corps conducted its assessment of whether the financial management systems conform to 

governmentwide financial systems requirements in accordance with FMFIA Section 4. Based on this 

assessment, the Peace Corps can provide reasonable assurance that its financial management systems 

are in compliance with the applicable provisions of FMFIA Section 4 and OMB Circular A-123 for

FY 2014 with the exception of one nonconformance for the Federal Information System Management 

Act of 2002 (FISMA). Details of the FISMA nonconformance are in Appendix 1.

Carolyn Hessler-Radelet, Director

November 17, 2014

Joseph L. Hepp, Jr.

Chief Financial Officer

November 17, 2014
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THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 45

Performance Section

Performance Section
46 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

The Performance Section details the FY 2014 results 

of the 11 strategic objectives and the 26 performance 

goals in the FY 2014–18 Strategic Plan and FY 2014 

Annual Performance Plan. This is the first year of 

agency operations under the new strategic plan. 

The FY 2014–18 Strategic Plan and FY 2014 Annual 

Performance Plan may be found at www.peacecorps.

gov/strategicplan.

Verification and Valida tion of Performance Data

As stated in the Director’s Letter, the agency’s

FY 2014 performance results are based on reliable 

and valid data that are complete as of the end 

of the fiscal year. Data collection and reporting 

consistency is ensured by the use of detailed 

performance goal data reference sheets, which 

include operational definitions, data sources, and 

a comprehensive methodology for measuring each 

performance indicator. The Peace Corps Office 

of Strategic Information, Research, and Planning 

reviews all performance data to ensure they are 

complete and accurate. Major data sources and 

verification and validation processes are described 

in detail in Appendix 2, Verification and Validation 

of Performance Data.

Strategic Plan Framework

The FY 2014–18 Strategic Plan includes the longrange goals and objectives designed to advance the 

Peace Corps mission. The accompanying FY 2014 

Annual Performance Plan lays out the strategies 

and activities the agency utilizes to accomplish these 

goals and objectives as well as the specific results the 

agency expects to achieve over time. 

The FY 2014–18 Strategic Plan and FY 2014 Annual 

Performance Plan include the following components:

• Strategic Goals reflect the broad, long-term 

outcomes the agency works toward to achieve 

the Peace Corps mission of world peace and 

friendship. 

• Strategic Objectives express the specific areas 

the agency will prioritize to achieve the strategic 

goals. Strategic objectives may support multiple 

strategic goals.

• Strategies and Activities include the actions 

the agency intends to take to meet agency goals 

and objectives.

• Performance Goals state a quantitative level 

of performance, or “target,” to be accomplished 

within a specific timeframe.

• Lead Offices are responsible for coordinating 

agencywide efforts to develop, implement, and 

report on plans to achieve each performance 

goal.

Introduction
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 47

Performance Section

Strategic Goals

The Peace Corps’ three strategic goals are based on the three core goals outlined in the Peace Corps Act (1961). 

Each of the strategic goals is supported by several strategic objectives as shown below:

Strategic Objectives

Strategic Goal 1: 

Building Local 

Capacity

Strategic Goal 2: 

Sharing America 

with the World

Strategic Goal 3: 

Bringing the World 

Back Home

1. Volunteer Well-Being X X X

2. Service Opportunity of Choice X X X

3. Development Impact X X

4. Cross-Cultural Understanding X X X

5. Continuation of Service X

6. Diversity and Inclusion X X X

7. Site Development X X

8. Train-Up X X

9. High-Performing Learning 

Organization X X X

10. Global Connectivity X X X

11. Measurement for Results X X X
48 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Legend

The following legend details the key symbols used in the Performance Section.

Strategic Objective Status:

Noteworthy

progress

The agency is on track to achieve the strategic objective. Strategies and activities 

have been executed on schedule, and there is evidence to suggest they are leading 

to the desired outcomes. Performance goal targets have either been met or are 

expected to be met in the future as the result of planned strategies.

Area for 

improvement

An increased focus is needed by the agency to improve performance on the 

strategic objective. Some strategies and activities may have been executed, but 

more progress is needed to advance the strategic objective. Additional data may be 

needed to better understand performance.

Performance Goal Targets:

ü Target met

û Target not met

No target set The agency did not set FY 2014 targets for performance goals measured by new 

data sources. New data sources include the Global Counterpart Survey, the Host 

Country Staff Survey, and elements of the Volunteer Reporting Tool and the Annual 

Volunteer Survey (AVS). Data collected in FY 2014 from these new sources were used 

to develop targets for future years.

Performance Results by Strategic Objective

Strategic Objective 1: Volunteer Well-Being

Enhance the safety, security, and health of Volunteers through rigorous 

prevention and response systems and high-quality medical and mental health 

services (Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Noteworthy

progress

Volunteers serve in local communities often under hardship conditions where the health care infrastructure and 

security environments differ from those of the United States. The Peace Corps develops rigorous prevention and 

response systems and services to support the safety, security, and physical and emotional health of Volunteers. 

The agency has implemented several critical reforms to ensure the optimal safety, security, and health of 

Volunteers. The agency will evaluate the effectiveness of these reforms by exploring new methods for measuring 

Volunteer well-being in future years.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 49

Performance Section

Key Strategies and Activities:

• Finalize implementation of the Kate Puzey 

Peace Corps Volunteer Protection Act of 

2011: The agency continued to move toward 

full implementation of the Act. Activity in

FY 2014 included continuing implementation 

of the Sexual Assault Risk Reduction and 

Response (SARRR) program. Staff who provide 

support to victims of crime have completed 

mandatory SARRR training, and sexual 

assault response liaisons at all posts have been 

trained. Additional information may be found at 

www.peacecorps.gov/volunteer/learn/safety/

support/puzey/.

• Improve pre-service training sessions: The 

agency updated pre-service training sessions on 

mitigating risks and maintaining physical and 

emotional health to meet the agency’s global 

learning standards. 

• Implement the electronic medical records 

system: The agency began implementation of 

the new electronic medical records system and 

initiated Peace Corps medical officer training. 

When fully operational, the new system will 

streamline procurement of medical supplies, 

provide real-time medical information, and 

allow Volunteers to communicate with healthcare professionals and provide feedback through 

a portal.

Analysis: The agency implemented 107 of 159 

(67 percent) critical safety and security 

recommendations. Challenges to meeting this 

performance goal include determining the 

appropriate definition for what constitutes a “critical” 

recommendation leading to improved Volunteer 

safety, as well as the lack of a centralized data 

management system to store data related to critical 

recommendations. While the implementation of 

critical safety and security recommendations will 

continue to be an activity undertaken to improve 

safety and security systems at overseas posts, 

the agency is in the process of developing a new 

performance goal that will more directly measure 

Volunteer safety and security outcomes. The 

proposed new measure will include Volunteer 

perceptions of their safety and security in addition 

to data on reported incidents of crime against 

Volunteers. The agency expects to utilize the new 

Performance Goal Results:

Performance Goal 1.1: Implement Critical Safety and Security Recommendations

Increase the percentage of critical Volunteer safety and security 

recommendations implemented by the agreed

upon time to 90 percent by FY 2015

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target 100% 100% 85% 88% 88% --

Result 56% 79% 75% 84% 67%

Number of posts 

that had their 

safety and security 

systems reviewed 

during FY 2014.
50 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Performance Goal 1.2: Volunteer Satisfaction with

Medical and Mental Health Support

Reduce the percentage of Volunteers dissatisfied1

 with medical and mental 

health support to 7.0 percent by FY 2016

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 8.2% 7.2%

Result2 7.0% 7.0% 7.4% 9.2% 8.6%

1

 Includes the bottom two negative response options on a five-point scale. In FY 2014, the agency redesigned the Annual Volunteer 

Survey (AVS) questionnaire. As part of the redesign, the response scales for a number of questions were changed from an unbalanced 

to a balanced format where there are an equal number of positive and negative categories on the response scale. The decision to use 

balanced scales was made in order to improve the quality of AVS responses by making the positive, neutral, and negative options 

more clear for respondents. For this performance goal, the bottom two negative response options on the five-point scale were 

changed from “Minimally/Not at All” to “Dissatisfied/Very Dissatisfied.”

2

 Due to the improvements to the AVS in FY 2014, including modifying the response scales (described above) and reducing the length 

of the questionnaire by half, results from FY 2010–13 (shaded in grey) may not be directly comparable to results in FY 2014 and future 

years. However, year-to-year comparison of results from FY 2014 and beyond will be possible. Additional information on the effects of 

the AVS changes on performance results may be found in Appendix 2, Verification and Validation of Performance Data.

Analysis: While the target was not met, the 

difference between the FY 2014 result and target 

is not of practical significance. Additionally, the 

result may have been influenced by improvements 

to the AVS in FY 2014. The Peace Corps provides 

direct medical care for its Volunteers, and several 

factors may contribute to patient satisfaction, 

including satisfaction with Peace Corps medical 

officers (PCMO), disease incidence, the quality of 

local providers, and medical facilities. The agency 

works to improve Volunteer health outcomes and 

satisfaction with medical and mental health support 

by strengthening PCMO support, ensuring vacant 

PCMO positions are filled in a timely manner, 

providing continuous education for medical staff, 

improving Volunteer training on maintaining 

physical and emotional health, and focusing on 

quality improvement.

Data Source: Annual Volunteer Survey 

Lead Office: Office of Health Services

Strategic Objective 2: Service Opportunity of Choice

Position the Peace Corps as the top choice for talented Americans interested in 

service by reaching a new generation of potential Volunteers and streamlining 

the application process (Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Noteworthy

progress

performance goal beginning in FY 2016. In the 

interim, the agency will measure Volunteer safety 

and security through an AVS measure related to 

Volunteer satisfaction with safety and security 

support in FY 2015.

Data Source: Peace Corps administrative records 

Lead Office: Office of Global Operations
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 51

Performance Section

Performance Goal Results:

Performance Goal 2.1: Volunteer Requests Met

Field 100 percent of the Volunteers requested by overseas posts each year

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- 95% 95% 95% 100% 100%

Result 101% 97% 97% 90% 98%

Analysis: The agency fielded 3,485 of the 3,554 

Volunteers requested by posts last year. As the time 

from applying to the Peace Corps to entering on duty 

as a Volunteer typically takes over a year, the agency 

did not meet the target largely due the low number 

of applications received in FY 2012–13. The greater 

For over 50 years, the Peace Corps has been a top choice for talented Americans interested in service. However, 

individuals now have a growing range of international service opportunities from which to choose. To address this 

challenge, the Peace Corps has transformed its application and selection process to open service opportunities to 

a new generation of Volunteers.

The agency made significant improvements to the application process in the second half of the fiscal year. While 

performance goal targets were not met, the agency expects the gains achieved in FY 2014 to continue into the 

next year and beyond.

Key Strategies and Activities:

• Modernize and streamline the application 

process: As a result of changes to the application 

process, applicants can now choose the programs 

and countries to which they would like to apply. 

The application is also significantly shorter 

(reduced from eight hours required to complete an 

application to one hour). Additionally, applicants 

have more information on when they can expect 

to receive an invitation for service. 

• Conduct market research on core prospects 

and their primary influencers: The agency is 

in the process of conducting a market research 

project to better understand the brand and 

value of the Peace Corps from the perspectives

of core prospects (18- to 26-year-olds), future 

prospects (15- to 17-year-olds), and their primary 

influencers (e.g., family and friends). The agency 

has completed its review of research related to 

millennials and is in the process of fielding an 

omnibus survey and qualitative testing. The 

research project will conclude by the end of the 

calendar year and will inform marketing and 

recruitment strategies. 

• Engage in proactive recruitment and invest 

in additional staff: To meet aggressive targets 

to increase the number of applications received 

for Volunteer service, the agency has adopted 

a more proactive approach to recruitment and 

increased recruitment and placement staff by 

over 50 percent. The agency recently kicked off an 

ongoing, agencywide effort to call over 100,000 

prospective applicants. In the past, the agency did 

not have sufficient staffing resources to directly 

follow-up with so many prospects.
52 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

number of applications in FY 2014, as well as agency 

plans to implement a waitlist system, will increase 

the percentage of requests for Volunteers met next 

year and beyond.

Data Source: Peace Corps database 

Lead Office: Office of Volunteer

Recruitment and Selection

Analysis: Prior to the suspension of the programs in 

Ukraine and Kenya due to security concerns as well 

as the temporary removal of Volunteers in Guinea, 

Liberia, and Sierra Leone due to the Ebola outbreak, 

the agency was on track to maintain the FY 2013 

number of Volunteers serving. The agency plans to 

return to each of these countries as conditions on 

the ground improve. In FY 2014, the agency entered 

Kosovo for the first time and restarted the previously 

suspended program in Mali. The Peace Corps is 

planning to increase its presence around the world by 

opening or reopening programs in Burma, Comoros, 

and Timor Leste, and increasing Volunteer numbers 

in existing programs.

Data Source: Peace Corps database 

Lead Office: Office of Global Operations

Performance Goal 2.2: Increase Service Opportunities

Increase the number of Volunteers serving annually to 10,000 by FY 2018

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 7,600 8,200

Result 8,655 9,095 8,073 7,209 6,818

Top 5 Posts By Number of 

Volunteers Who Entered Service

Ethiopia 133

Zambia 120

Senegal 116

Morocco 104

Paraguay 101

7,810 7,749 8,079 7,876 7,671

8,655 9,095

8,073

7,209 6,818

0

2,000

4,000

6,000

8,000

10,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Volunteers

Fiscal Year

Number of Volunteers Serving 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 53

Performance Section

Analysis: While the target was not met, the agency 

expects the strategies implemented in late FY 2014 to 

continue producing positive results in future years. 

After the modifications to the application process 

in July 2014, the agency saw a dramatic increase in 

the number of applications received—from July to 

September of this year, the agency saw an over 200 

percent increase in applications over the same period 

last year, leading to a 22-year high in the number of 

applications received in FY 2014. Future plans to 

expand marketing and recruitment activities will 

sustain this growth and lead to the achievement of 

this performance goal over time.

Data Source: Peace Corps database 

Lead Office: Office of Volunteer

Recruitment and Selection

Performance Goal 2.3: Increase Applications

Increase applications for Volunteer service to 25,000 by FY 2018

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 20,000 22,000

Result 13,430 12,206 10,091 10,118 17,3361

1

 The definition of an application for Volunteer service was modified in FY 2014—results for FY 2010–13 are reported using the 

previous definition. The agency received 15,404 applications in FY 2014 as measured by the previous definition. Under the new 

definition, an “application” occurs when a qualified U.S. citizen submits a completed application for either the two-year Peace Corps 

Volunteer program or the short-term Peace Corps Response program. The previous definition did not include Peace Corps Response 

and required that individuals submit both the application and health history form. Under the new definition, the agency received 

19,151 applications in FY 2014. For comparison to the FY 2014 target, only applications from the two-year program (17,336) are 

reported in FY 2014. Future performance targets will be set based on this new definition which includes applications from both the 

two-year program and the Peace Corps Response program. 

 733 

 952 778 940 1,137 

 817 714 

 1,203 

 1,036 

 3,605 

 2,666 2,755 

 -

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

 4,000

FY 2014 FY 2013

Applications

Applications by Month
54 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Analysis: Results for this performance goal are 

expected to lag behind other indicators of the 

Volunteer recruitment and selection process 

as individuals who applied under the previous 

application process continue to move through the 

system. The development of quarterly application 

deadlines to rank and pool candidates, the increase 

in recruitment and placement staff, and the reduction 

in the time required to complete the application are 

expected to reduce wait times in the future.

Data Source: Peace Corps database 

Lead Office: Office of Volunteer

Recruitment and Selection

Performance Goal 2.4: Reduce Time from Application to Invitation

Reduce the median time from application to invitation

to no more than 3 months by FY 2016

FY 2014

Target

û

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- 5 months 4 months

Result 10 months 11 months 6 months1 7 months

1

 In FY 2013, the application and medical review processes were modified; invitations are now offered prior to medical clearance. This 

resulted in a reduction of the median time from application to invitation. 

Application Process
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 55

Performance Section

Strategic Objective 3: Development Impact

Advance community-based development by strengthening the capacity of 

local individuals and communities, focusing on highly effective technical 

interventions, and leveraging strategic partnerships

(Supports Strategic Goals 1 and 2)

FY 2014

Status

Area for 

improvement

The Peace Corps contributes to local development outcomes and strengthens local capacity by implementing 

Volunteer projects that utilize technical interventions proven to be successful. The agency also partners with 

other U.S. government, nongovernmental, and private sector development organizations to enhance Volunteers’ 

impact through knowledge, skill, and resource sharing.

 The Peace Corps is in the process of significantly enhancing its ability to measure the development impact of 

Volunteers. However, more data are needed to fully understand if the agency’s strategies for supporting and 

enhancing Volunteers’ development work are leading to gains in local development outcomes.

Key Strategies and Activities1:

• Revise Volunteer project frameworks: 

The agency completed the major revisions to 

project frameworks for all Volunteer projects in

FY 2013 and continued to update frameworks as 

needed in FY 2014. Project frameworks include 

the goals the Volunteers are working toward, 

recommended activities for achieving those 

goals, and indicators of success. This multiyear 

effort is in response to a recommendation in 

the 2010 Comprehensive Agency Assessment 

(ht t p://f iles.peacecor ps.gov/multimedia/

pdf/opengov/PC_Comprehensive_ Agency_

Assessment.pdf) to focus Volunteer projects 

on a discrete set of interventions proven to be 

successful when executed by Volunteers.

• Actively participate in Presidential and 

whole-of-government initiatives: Due to the 

placement, intercultural, and language skills of 

Peace Corps Volunteers, they are well-positioned 

to expand the reach of major development 

initiatives in local communities. Volunteers 

work on projects related to several Presidential 

and whole-of-government initiatives, including 

the Energy and Climate Partnership of the 

Americas; Feed the Future; the Global Health 

Initiative; the President’s Emergency Plan for 

AIDS Relief (PEPFAR); the President’s Malaria 

Initiative; and Saving Mothers, Giving Life.

• Modify guidelines for feedback to Volunteers: 

The agency recognizes the critical importance 

of providing timely and quality feedback to 

Volunteers on their work to ensure that they 

benefit from the expertise of staff and the best 

practices of other Volunteers. The agency now 

has regional standards in place for the timeliness 

and frequency required for providing this 

feedback. Posts are also in the process of adding 

dedicated staff positions, which will include a 

focus on improving the feedback provided to 

Volunteers on their work, to strengthen the 

support provided to Volunteers.

1

 Volunteer activities related to the achievement of Strategic Objective 3: Development Impact may be found in the Work of the 

Volunteers Section.
56 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

1

 FY 2014 results are preliminary and will be updated with the FY 2016 Annual Performance Plan to be issued with the FY 2016 

Congressional Budget Justification in February 2015.

Performance Goal Results:

Performance Goal 3.1: Advance Community-Based Development Outcomes

Increase the percentage of projects with documented gains on

community-based development outcomes

FY 2014

Target

No target set

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

No target set; 

Baseline data 

collection

Result1 -- -- -- -- 61%

Analysis: This performance goal is measured by data 

collected by Volunteers on their activities related 

to 19 standard sector indicators that represent 

Volunteer achievement across the Peace Corps’ six 

programmatic sectors. The result represents the 

percentage of projects that met two thresholds—a 

minimum percentage of Volunteers reporting on 

an indicator and a minimum percentage of annual 

targets met in the project framework. As Volunteer 

projects and activities vary at each post, not all 

Volunteers report on these indicators. However, the 

results represent Volunteer work at the majority of 

posts; Volunteers at 52 posts working in 103 projects 

reported on at least one of these standard sector 

indicators in FY 2014. This was a new performance 

goal in FY 2014, and the agency will continue to 

collect baseline data in FY 2015 to ensure adequate 

data for the development of future year targets.

Data Source: Volunteer Reporting Tool 

Lead Office: Office of Global Operations

Programmatic Sector Standard Sector Indicator

Education Improved English Teaching Methodology

Health Youth adopting healthy sexual behavior

Environment Improved Community Environmental Action

Community Economic 

Development Improved project design and management in local organizations

Youth in Development Developed Life Skills in Youth: Decision-making and Critical thinking

Agriculture Adoption of new technologies and practices in agriculture

Examples of Standard Sector Indicators
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 57

Performance Section

Analysis: The agency launched its first agencywide 

survey of counterparts in FY 2014, reaching 1,436 out 

of an estimated 5,800 counterparts (approximately 

25 percent). The survey was launched mid-year, 

and the percentage of surveyed counterparts is 

not sufficient to draw conclusions globally. As a 

result, the agency will continue to collect baseline 

data in FY 2015 to develop targets for future years. 

Although the agency does not yet have sufficient data 

at the global-level, data collected in FY 2014 does 

provide evidence of the influence of Volunteers at 

the three posts that achieved a response rate of over 

90 percent: Azerbaijan, Macedonia, and Ukraine. 

More than eight out of ten counterparts (from 

82 to 87 percent) surveyed in these three countries 

responded that either their capacity or the capacity of 

their organization was strengthened as the result of 

working with a Volunteer. The agency will continue to 

work with posts as they field the Global Counterpart 

Survey in FY 2015 and beyond to ensure results are 

globally representative to inform targets for future 

years.

Data Source: Global Counterpart Survey 

Lead Office: Office of Global Operations

Performance Goal 3.2: Strengthen Local Capacity

Increase the percentage of projects with documented gains in

the capacity of host country individuals

FY 2014

Target

No target set

=

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

No target set; 

Baseline data 

collection

Result -- -- -- -- --

Azerbaijan

• Increasing capacity in

 their primary project sector

• Improved English skills

• Creating new materials

 and resources

Macedonia

• Improved English skills

• Increasing capacity in

 their primary project sector

• Creating new materials

 and resources

Ukraine

• Increasing capacity in

 their primary project sector

• Increasing confidence

 and leadership

• Leading classes

 and workshops

Counterparts in these countries say the

most important contributions of Volunteers are:
58 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Performance Goal 3.3: Improve Feedback to Volunteers

Increase the percentage of Volunteers satisfied1

 with the timeliness and quality 

of feedback provided on their work to 72 percent by FY 2018

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 40%2 60%

Result3 35% 39% 33% 38% 55%

1

 Includes the top two positive response options on a five-point scale.

2

 The FY 2014 target for this performance goal was based on FY 2010–13 results from a proxy measure from the AVS: “How satisfied 

are you with the following support provided by in-country Peace Corps staff: Feedback on my work reports.” Two new questions were 

introduced in the AVS to measure this performance goal in FY 2014 and beyond.

3

 In FY 2014, the agency redesigned the AVS questionnaire. As part of the redesign, the response scales for a number of questions 

were changed from an unbalanced to a balanced format where there are an equal number of positive and negative categories on 

the response scale. The decision to use balanced scales was made in order to improve the quality of AVS responses by making the 

positive, neutral, and negative options more clear for respondents. The length of the questionnaire was also reduced by half. Due 

to the improvements to the AVS, as well as the use of a new question to measure this performance goal, results from the proxy 

measure in FY 2010–13 (shaded in grey) may not be directly comparable to results in FY 2014 and future years. However, year-toyear comparisons of results from FY 2014 and beyond will be possible. Future year targets have been adjusted based on the FY 2014 

result. Additional information on the effects of the AVS changes on performance results may be found in Appendix 2, Verification and 

Validation of Performance Data.

Analysis: The target was met in FY 2014. However, 

the achievement may have been due to measurement 

changes resulting from improvements to the AVS in 

FY 2014. Targets for FY 2015 and future years have 

been adjusted upward based on the FY 2014 result. 

This performance goal measures the percentage 

of Volunteers satisfied with both the timeliness 

and quality of feedback provided by Peace Corps 

staff. When analyzed separately, Volunteers are 

slightly more satisfied with the quality of feedback 

(67 percent) than with the timeliness of feedback 

(64 percent). Additionally, Volunteers in each 

sector rated the timeliness and quality of feedback 

differently. Volunteers in the Community Economic 

Development and Youth in Development sectors 

rated the timeliness and quality of feedback the 

highest (62 percent and 60 percent, respectively) 

followed by Agriculture (59 percent), Education 

(57 percent), Environment (56 percent), and Health 

(49 percent).

Data Source: Annual Volunteer Survey 

Lead Office: Office of Global Operations
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 59

Performance Section

Strategic Objective 4: Cross-Cultural Understanding

Build a deeper understanding of other cultures by developing long-lasting 

connections between American and host country individuals and communities 

(Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Area for 

improvement

Volunteers advance cultural understanding between the United States and the communities where they serve 

by living and working among local people and by sharing their experiences with family, friends, and colleagues 

when they return home. To enhance the Volunteers’ work to build cultural understanding, the agency provides 

Volunteers with training and tools to thrive in host country cultures and encourages them to use modern 

technology to connect host country and American people in meaningful conversations that lead to strong and 

sustained relationships. 

Volunteers serve as cultural ambassadors between host countries and the United States—promoting mutual 

understanding among peoples through daily interactions and the use of new technology. However, to reach 

Volunteers’ full potential for contributing to local development and cross-cultural understanding, more progress 

is needed in providing training and resources to Volunteers and staff on recent advances in intercultural 

competence.

Key Strategies and Activities1

:

• Develop intercultural competence training 

and tools: The agency is in the beginning stages 

of the development of new mechanisms to build 

and measure the intercultural competence of 

staff and Volunteers. Intercultural competence 

is the knowledge, skills, and attitudes necessary 

to communicate effectively and appropriately 

with people from other cultures. In FY 2014, 

the agency developed and piloted an online 

training for use by staff in managing cultural 

differences. In FY 2015, the agency will focus 

on rolling out the new online training for both 

staff and Volunteers and will conduct market 

research to identify appropriate tools to 

measure the intercultural competence of staff 

and Volunteers. 

• Increase the use of social media and other 

technology to promote cross-cultural 

understanding: Volunteers regularly use 

social media and other technology to connect 

with local partners, other Volunteers, and 

family and friends back home. The Peace Corps 

contributes to this through agency-supported 

social media sites as well as special programs 

designed to encourage cultural education and 

understanding. The second annual Blog It 

Home Competition is one example. Through 

the program, nine top Volunteer bloggers 

(from among more than 350 Volunteers from 

60 countries) were selected and recognized for 

how they use their blogs to increase cultural 

understanding. Twenty finalists were featured 

on the Peace Corps’ Facebook page (www.

facebook.com/peacecorps) and voted on by 

the public. The competition reached more than 

420,000 people on Facebook and received over 

11,000 votes. 

1

 Volunteer activities related to the achievement of Strategic Objective 4: Cross-Cultural Understanding may be found in the Work of 

the Volunteers Section.
60 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Performance Goal Results:

Performance Goal 4.1: Greater Understanding of Americans

Increase the percentage of counterparts who report a greater understanding

of Americans after working with a Volunteer

FY 2014

Target

No target set

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

No target set; 

Baseline data 

collection

Result -- -- -- -- --

Analysis: This performance goal is measured 

through the Global Counterpart Survey—first 

launched in FY 2014. As the percentage of surveyed 

counterparts (approximately 25 percent) is not 

sufficient to draw conclusions globally, the agency 

will continue to collect baseline data in FY 2015 

to develop targets for future years. While results 

are not available at the global-level, data collected in

FY 2014 from the three posts that achieved a 

response rate of over 90 percent (Azerbaijan, 

Macedonia, and Ukraine) provides an indication 

of the influence of Volunteers on counterparts’ 

understanding of Americans. The vast majority of 

counterparts surveyed in these three countries (from 

87 to 100 percent) reported a greater understanding 

of Americans after working with a Volunteer. The 

agency will continue to work with posts as they 

field the Global Counterpart Survey in FY 2015 and 

beyond to ensure results are globally representative 

to inform targets for future years.

Data Source: Global Counterpart Survey 

Lead Office: Office of Global Operations

Performance Goal 4.2: Increase Cross-Cultural Connections

Increase the percentage of Volunteers who report they facilitated direct 

interactions between American and host country individuals and communities 

to 62 percent by FY 2016

FY 2014

Target

No target set

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

60%

Result -- -- -- -- 57%
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 61

Performance Section

Analysis: This performance goal captures 

Volunteers’ work to facilitate direct in-person and 

virtual interactions between Americans and host 

country peoples through participation in match 

programs, social media, in-person visits, web 

conferences, and other mechanisms. This question 

was included in the Annual Volunteer Survey for the 

first time in FY 2014. Initial analysis of survey results 

suggests that the longer that a Volunteer serves the 

more likely they are to facilitate interactions between 

Americans and host country individuals and 

communities. While nearly one-third of Volunteers 

(32 percent) facilitated such interactions in the first 

three months of their service, seven in ten Volunteers 

(70 percent) did so in their last three months. 

Volunteer language ability may be another factor. 

Regardless of how long they have served, two-thirds 

of Volunteers (66 percent) who felt that they spoke 

the local language well, facilitated direct interactions 

compared to 45 percent of those who felt they spoke 

the language poorly.

Data Source: Annual Volunteer Survey 

Lead Office: Office of Overseas Programming 

and Training Support, Office of Third Goal and 

Returned Volunteer Services

Strategic Objective 5: Continuation of Service

Support returned Volunteers’ continuation of service by fostering a vibrant 

alumni network, providing tools and resources to ease their transition after 

service, and offering opportunities for them to share their experiences 

(Supports Strategic Goal 3)

FY 2014

Status

Noteworthy

progress

64% The Caribbean

(IAP)

61% Latin America

(IAP)

64% Eastern Europe/

Central Asia

(EMA)

57% North Africa and

the Middle East

(EMA)

54% Africa

EMA | Europe, Mediterranean, and Asian Region

 IAP | Inter-America and the Pacific Region

57% Pacific Islands

(IAP)

56% Asia

(EMA)

Volunteers who report they facilitated direct interactions between

American and host country individuals and communities

Percent of 2014 Annual Volunteer Survey Respondents

who facilitated Cross-Cultural Connections
62 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

The more than 215,000 Americans who have served as Volunteers since 1961 represent a significant community 

of skilled and dedicated individuals who continue serving the American public and the overseas communities 

where they lived and worked long after they return home. The agency prepares returned Volunteers (RPCVs) 

to be active contributors to the Peace Corps mission on an ongoing basis by offering career and other transition 

services and providing opportunities for them to share their experiences with the American public. 

In FY 2014, the agency continued to improve the career services provided to RPCVs and to strengthen 

relationships with independent RPCV groups to advance the Peace Corps mission and support returned 

Volunteers. Planned improvements to data collection and an expansion of RPCV speaking opportunities is 

expected to lead to continued gains in performance in future years.

Key Strategies and Activities:

• Expand RPCV career services through 

improved online resources: The agency 

launched a major revision to the RPCV section 

of the Peace Corps website in FY 2014 (http://

w w w.peacecorps.gov/resources/returned/

home/). The revised page features an RPCV 

Virtual Career Center, a “Bring the World 

Home” section with resources to help RPCVs 

share their story, and a section with information 

on how to connect with other returned 

Volunteers. 

• Actively promote the noncompetitive 

eligibility of RPCVs: The agency regularly 

works with federal employers to promote the 

benefits of using noncompetitive eligibility 

to hire Peace Corps staff and RPCVs. In

FY 2014, the agency held a noncompetitive 

hiring event at the Department of 

Transportation that included participants 

from the Department of Housing and Urban 

Development and the Department of Energy. 

• Gather regular feedback from RPCVs and 

improve contact information: The agency 

made progress in both improving RPCV contact 

information and systematically gathering 

feedback from RPCVs. Through a direct mail 

campaign, the agency collected an additional 

7,000 valid email addresses for RPCVs, for 

a total of approximately 50,000 valid RPCV 

emails. The agency also began developing an 

RPCV survey to gather feedback on the agency’s 

RPCV services as well as information on how 

RPCVs are continuing to contribute to the 

Peace Corps mission long after their service. 

The agency expects to launch the new survey in 

FY 2015. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 63

Performance Section

Performance Goal Results:

Performance Goal 5.1: Support RPCV Career Transition

Increase the number of returned Volunteers who access Peace Corps’ career 

services to 3,000 by FY 2016

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 2,500 2,750

Result -- -- -- -- 2,649

Analysis: Based on the assumption that the target 

audience for the Peace Corps’ career services is 

recently returned Volunteers, the FY 2014 target 

was set to reach a significant percentage of the 

number of Volunteers who complete service 

each year (an average of 3,500 each year from

FY 2010–13). Reliable RPCV registration 

information for career services for previous years 

was not available. The career services measured by 

this performance goal include: career conferences 

and fairs, employer panels, employer information 

sessions, career-focused webinars, résumé reviews, 

mock interviews, and career services provided at 

headquarters and regional recruitment offices.

Data Source: Peace Corps administrative records 

Lead Office: Office of Third Goal and Returned 

Volunteer Services

26% 43%

31%

Career Services (via 

email, phone, and in 

person at headquarters)

Career Events

(conferences, employer 

panels, and webinars)

All Other Services

(career-related

inquiries and event 

questions)

Agency-supported Returned Volunteer Services by Type of Interaction
64 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 8,000 10,000

Result -- -- -- -- 9,754

Analysis: This performance goal measures RPCV 

participation in agency-supported activities to 

increase Americans’ awareness and knowledge of 

other cultures, including the Coverdell World Wide 

Schools Speaker’s Match program, Peace Corps 

Week, Third Goal conferences and summits, and 

recruitment events. The agency began collecting 

this information in FY 2014; the target for this year 

was based on an estimate from a previous indicator 

that measured RPCV participation in both career 

events and Third Goal activities. Of the RPCVs 

who participated in agency-supported activities in 

FY 2014, 70 percent spoke at recruitment events, 

17 percent participated in events through the Peace 

Corps website including Peace Corps Week, 7 percent 

participated in video and classroom challenges, and 

6 percent participated in Third Goal conferences, 

summits, and other events.

Data Source: Peace Corps administrative records 

Lead Office: Office of Third Goal and Returned 

Volunteer Services

Performance Goal 5.2: Increase RPCV Engagement

Increase the number of returned Volunteers who participate in agencysupported Third Goal activities to 16,000 by FY 2018

FY 2014

Target

ü

593

6,860

1,659

642

Recruitment events 

and activities

Third Goal web 

activities

Video and classroom

challenges

Third Goal

conferences and 

summits

Returned Volunteer Engagement in Agency-supported Activities
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 65

Performance Section

The Peace Corps recruits a diverse workforce and Volunteer corps to ensure that—in promoting a better 

understanding of Americans on the part of the host countries—Volunteers and staff represent the rich diversity 

of the United States. To harness and support the unique perspectives of a diverse Peace Corps, the agency fosters 

an inclusive culture that encourages collaboration, flexibility, and fairness.

In FY 2014, the Peace Corps continued to increase the diversity of the Volunteer corps. The agency has also made 

strides in building an inclusive culture through the development of employee resource groups and the fielding of 

the first systematic, agencywide Host Country Staff Survey.

Key Strategies and Activities:

• Identify and mitigate economic barriers to 

service: The agency is collaborating with other 

organizations to mitigate economic barriers to 

Volunteer service in an effort to increase the 

socioeconomic diversity of the Peace Corps. 

The agency has discussed solutions regarding 

student loan relief with the U.S. Department of 

Education and other organizations.

• Implement a digital marketing strategy: The 

agency launched its first digital advertising 

campaign to increase Volunteer applications 

from Asian-American, African-American, 

and Hispanic populations. Results show 

the impact of the campaign was higher than 

industry standards. The campaign resulted in 

a 0.65 percent click-through rate—three times 

the industry standard. The majority of the 

individuals reached by the campaign viewed 

the advertisements on mobile devices.

• Develop Employee Resource Groups: Peace 

Corps employee resource groups (ERGs) are 

employee-driven groups drawn together by 

shared areas of interest. They are supported 

by the agency to promote networking, career 

development, community service, and 

cross-cultural understanding. They are also 

instrumental in recruitment, skill development, 

and morale-building. The agency currently has 

eight ERGs that focus on the following areas of 

interest: African-American; Asian-American 

and Pacific Islander; Hispanic; Jewish; 

LGBTQA (lesbian, gay, bisexual, transgender, 

queer, and ally); women; mindfulness; and 

veterans. 

Strategic Objective 6: Diversity and Inclusion

Actively recruit, support, and retain a diverse workforce and Volunteer corps 

and build an inclusive culture that encourages collaboration, flexibility, and 

fairness (Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Noteworthy

progress
66 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Performance Goal Results:

Performance Goal 6.1: Increase Applicant Diversity 

Increase applications for Volunteer service from individuals of minority racial 

and ethnic groups to 35 percent by FY 2016

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- 25% 26% 32% 34%

Result 24% 26% 27% 30% 33%

Analysis: Since FY 2008, the agency has seen a 

13 percentage point increase for this performance 

goal—a significant achievement. Growth has been 

largest in the African-American and Hispanic 

groups (a 6 and 5 percentage point increase since

FY 2008, respectively). Targets are informed 

by the college-degreed population of the United 

States to ensure the Volunteer corps reflects the 

diversity of America. Targets are set higher than the 

college-degreed rate to account for higher attrition 

of individuals of minority racial and ethnic groups; 

in FY 2014, 33 percent of applicants were from these 

racial and ethnic groups, compared to 25 percent of 

the Volunteer population.

Data Source: Peace Corps database 

Lead Office: Office of Volunteer Recruitment

and Selection

19%

10%

15%

20%

25%

30%

35%

40%

45%

50%

33%

0%

5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fiscal Year 

Percentage of Applications Received from

Individuals of Minority Racial and Ethnic Groups
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 67

Performance Section

Analysis: This question was included in surveys for 

each respondent group for the first time in FY 2014. 

The target was met with regard to U.S. direct hire 

staff—the only group for which a target was set in

FY 2014. Baseline data were collected in FY 2014 

from the Host Country Staff Survey and Annual 

Volunteer Survey to inform targets related to host 

country staff and Volunteers. Moving forward, the 

agency has set one performance target for all three 

respondent groups.

Preliminary results from FY 2014 illustrate a 

difference between the perceptions of staff and 

Volunteers on the degree to which the organizational 

culture of Peace Corps is open and inclusive. While 

89 percent of host country staff and 88 percent of 

U.S. direct hire staff reported positively, 80 percent of 

Volunteers reported positively. The agency’s efforts 

to improve performance on this goal in the future 

will focus on narrowing this gap and working with 

Volunteers on issues they have identified as areas 

for improvement. For example, of the Volunteers 

1

 Includes the top two positive response options on a five-point scale.

2

 The FY 2014 target only applies to U.S. direct hire staff and was based on an estimate derived from contextual information from the 

Employee Viewpoint Survey, including the following questions: “My supervisor/team leader listens to what I say” and “Managers/

supervisors/team leaders work well with employees of different backgrounds.” Based on the collection of baseline data from host 

country staff and Volunteers through the Host Country Staff Survey and Annual Volunteer Survey, respectively (shaded in grey), 

targets for FY 2015 and beyond apply to all three groups.

3

 FY 2014 results from the Employee Viewpoint Survey and Host Country Staff Survey are preliminary and will be updated with the

FY 2016 Annual Performance Plan to be issued with the FY 2016 Congressional Budget Justification in February 2015.

Top Three Gaps in Culture of Inclusion

Identified by Volunteers*

1. Race/Color/Ethnicity

2. Socioeconomic Status

3. Sexual Orientation

* Based on percentage of Volunteers who disagreed

 or strongly disagreed that the culture is inclusive

Performance Goal 6.2: Build an Open and Inclusive Organizational Culture 

Increase the percentage of Peace Corps Volunteers, U.S. direct hire staff, 

and host country national staff who report that the agency has an open and 

inclusive organizational culture1

 to 90 percent by FY 2016

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target2 -- -- -- -- 85% 88%

U.S. direct hire staff -- -- -- -- 88%

Result3 Host country staff -- -- -- -- 89%

Volunteers -- -- -- -- 80%
68 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Strategic Objective 7: Site Development

Establish an environment conducive to Volunteer success through an 

integrated approach to developing effective projects, preparing work sites, and 

successfully collaborating with local partners (Supports Strategic Goals 1 and 2)

FY 2014

Status

Area for

improvement

Before Volunteers arrive in their countries of service, the Peace Corps works to ensure they will have meaningful 

work that meets local needs and that there are local partners interested in working with them. The agency also 

verifies that Volunteer housing and work sites are safe, secure, and meet Volunteers’ medical and mental health 

needs. This foundation allows Volunteers to focus on their work both when they arrive in their community and 

throughout their service.

The agency made improvements in several components of site development in FY 2014; however, more progress is 

needed to meet this objective. Sustained, concentrated attention by the agency is required to meet the aggressive 

targets set for site development over time.

Key Strategies and Activities:

• Develop and implement post-specific site 

development procedures: Each region has 

specific site development and monitoring 

standards and, in FY 2014, the agency made 

progress on developing post-specific site 

development criteria, policies, and procedures 

for each post. Site development and monitoring 

standards include a required number of visits 

by Peace Corps staff to Volunteers’ sites 

each year, standards for communication and 

housing, requirements for collaborating with 

local communities, and site safety protocols, 

among others. 

• Increase staff capacity for site development 

and monitoring: As the result of new site 

development standards and procedures, the 

workload of staff at overseas posts has increased 

significantly. To address this challenge, the 

agency provided additional staff resources 

to the posts with the most need and is in the 

process of adjusting staffing at other posts to 

ensure Volunteers are positioned for success 

in well-developed and supported housing and 

work sites. 

• Train counterparts and host communities 

on working effectively with Volunteers: 

The Africa region has developed new training 

modules for counterparts and host families, 

which outline how to live and work effectively 

with Volunteers, including setting clear 

expectations regarding the role of the Volunteer.

who disagreed that the organization of the Peace 

Corps is open and inclusive to diversity, 71 percent 

of respondents selected race, color, or ethnicity as 

a gap in the culture of inclusion in the Peace Corps;

44 percent of respondents cited socioeconomic 

status, 39 percent cited sexual orientation, and

33 percent cited age.

Data Source: Annual Volunteer Survey, Employee 

Viewpoint Survey, Host Country Staff Survey 

Lead Office: Office of Civil Rights and Diversity
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 69

Performance Section

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 44% 62%

Result2 44% 42% 41% 42% 59%

1

 Includes the top two response options on a five-point scale. In FY 2014, the agency redesigned the AVS questionnaire. As part of the 

redesign, the response scales for a number of questions were changed from an unbalanced to a balanced format where there are 

an equal number of positive and negative categories on the response scale. The decision to use balanced scales was made in order 

to improve the quality of AVS responses by making the positive, neutral, and negative options more clear for respondents. For this 

performance goal, the top two positive response options on the five-point scale were changed from “Considerable/Exceptional” to 

“Satisfied/Very Satisfied.”

2

 Due to the improvements to the AVS in FY 2014, including modifying the response scales (described above) and reducing the length 

of the questionnaire by half, results from FY 2010–13 (shaded in grey) may not be directly comparable to results in FY 2014 and future 

years. However, year-to-year comparisons of results from FY 2014 and future years will be possible. Additional information on the 

effects of the AVS changes on performance results may be found in Appendix 2, Verification and Validation of Performance Data.

Analysis: The target was met in FY 2014. However, 

the achievement may have been due to measurement 

changes resulting from improvements to the AVS 

in FY 2014. Targets for FY 2015 and future years 

have been adjusted upward based on the FY 2014 

result. Consistent with FY 2013 results, Volunteer 

satisfaction with site selection and preparation 

remains the lowest among six types of in-country 

Peace Corps support functions surveyed. Volunteer 

responses to other AVS questions provide additional 

Meaningful Work Improves Peace Corps Service

Performance Goal Results:

Performance Goal 7.1: Improve Site Development 

Increase the percentage of Volunteers satisfied1

 with site selection and 

preparation to 74 percent by FY 2018

FY 2014

Target

ü
70 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

insights on which components of site development 

and preparation require additional focus by the 

agency. The vast majority of Volunteers feel safe 

living at their sites (93 percent), which reflects 

community selection and housing preparation by 

the Peace Corps. However, only slightly more than 

half of respondents said that meaningful work was 

available (55 percent) or host country individuals 

were prepared (54 percent) when they arrived at site.

Data Source: Annual Volunteer Survey 

Lead Office: Africa Region; Europe, Mediterranean, 

and Asia Region; Inter-America and the Pacific 

Region

Performance Goal 7.2: Improve Counterpart Selection and Preparation 

Increase the percentage of Volunteers satisfied1

 with the community 

integration and project work support provided by their assigned counterpart to 

61 percent by FY 2018

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 34%2 55%

Result3 33% 31% 32% 32% 53%

1

 Includes the top two response options on a five-point scale.

2

 The FY 2014 target for this performance goal was based on FY 2010–13 results from a proxy measure from the AVS: “When you 

arrived at your community, how prepared for your arrival were the host country individuals with whom you would be working?” A 

new question was introduced in the AVS to measure this performance goal in FY 2014 and beyond. Future year targets have been 

adjusted based on the FY 2014 result.

3

 In FY 2014, the agency redesigned the AVS questionnaire. As part of the redesign, the response scales for a number of questions 

were changed from an unbalanced to a balanced format where there are an equal number of positive and negative categories on 

the response scale. The decision to use balanced scales was made in order to improve the quality of AVS responses by making the 

positive, neutral, and negative options more clear for respondents. The length of the questionnaire was also reduced by half. Due 

to the improvements to the AVS, as well as the use of a new question to measure this performance goal, results from the proxy 

measure in FY 2010–13 (shaded in grey) may not be directly comparable to results in FY 2014 and future years. However, year-toyear comparisons of results from FY 2014 and beyond will be possible. Additional information on the effects of the AVS changes on 

performance results may be found in Appendix 2, Verification and Validation of Performance Data. 

Analysis: The target was met in FY 2014. However, 

the achievement may have been due to measurement 

changes resulting from improvements to the AVS in 

FY 2014. Targets for FY 2015 and future years have 

been adjusted upward based on the FY 2014 result. 

This performance goal measures the percentage 

of Volunteers satisfied with both the community 

integration and project work support provided by 

their assigned counterpart; 53 percent of Volunteers 

were satisfied with both aspects of support. When 

analyzed separately, Volunteers are significantly 

more satisfied with the support provided by their 

counterpart on integrating into the community 

(72 percent) than the support for their projects 

and activities in their communities (63 percent). 

Additionally, over two-thirds of Volunteers

(68 percent) reported that they continued to work 

with their Peace Corps-assigned counterpart.

Data Source: Annual Volunteer Survey 

Lead Office: Africa Region; Europe, Mediterranean, 

and Asia Region; Inter-America and the Pacific 

Region
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 71

Performance Section

 Performance Goal Results:

Performance Goal 8.1: Improve Language Learning 

Increase the percentage of Volunteers tested at close of service who achieve the 

“advanced” level or above on the language proficiency interview

to 70 percent by FY 2018

FY 2014

Target

ü

Strategic Objective 8: Train-Up

Develop a highly-effective Volunteer corps through a continuum of learning 

throughout service (Supports Strategic Goals 1 and 2)

FY 2014

Status

Area for

improvement

The Peace Corps invests in training throughout service to help Volunteers translate their skills into the local 

context. Training topics focus on developing Volunteers’ technical capacity, language skills, and cultural acuity. 

By providing ongoing training throughout service, the agency provides Volunteers with the tools they need to be 

effective in their work.

In FY 2014, the agency made great strides in standardizing the training that Volunteers receive during pre-service 

training through the Focus-In/Train-Up strategy. However, more progress is needed to coordinate and develop 

training topics throughout Volunteers’ service and to ensure adequate time for technical and language training.

Key Strategies and Activities:

• Expand Volunteer language testing: The 

agency implemented new guidance to require 

the expansion of Volunteer language testing 

at all posts. Starting in FY 2015, all posts will 

be required to conduct language proficiency 

interviews for all Volunteers who are closing 

their service. In FY 2014, only 53 percent of 

Volunteers who finished their service were 

tested. An expansion in Volunteer language 

testing will provide the agency with important 

information on the language learning that 

occurs throughout a Volunteers’ service to 

inform language training, mentoring, and 

support strategies. 

• Revise training packages: Through the 

Focus-In/Train-Up strategy—initiated in

FY 2012—the Peace Corps has undertaken 

a major revision of the training provided 

to Volunteers. Curricula for each of the six 

programmatic sectors as well as global core 

training packages have been developed and 

training materials continue to be revised. In 

FY 2014, the agency developed 16 new training 

packages, 17 new stand-alone training sessions, 

and seven new training manuals and revised 

three existing training packages. 

• Establish terminal learning objectives for 

Volunteers: The agency is developing terminal 

learning objectives to measure Volunteers’ 

progress toward the key competencies they 

need to be effective in their work. The agency 

finalized objectives for the global core training 

packages in FY 2014, and sector-specific 

objectives are in development and are expected 

to be required for all posts in FY 2015. 
72 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Performance Goal 8.2: Increase Effectiveness of Technical Training

Increase the percentage of Volunteers who report that their technical training 

was effective1

 in preparing them to work at their site to 70 percent by FY 2018

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 52% 64%

Result2 44% 44% 44% 50% 63%

1

 Includes the top two positive response options on a five-point scale. In FY 2014, the agency redesigned the AVS questionnaire. As 

part of the redesign, the response scales for a number of questions were changed from an unbalanced to a balanced format where 

there are an equal number of positive and negative categories on the response scale. The decision to use balanced scales was made 

to improve the quality of AVS responses by making the positive, neutral, and negative options more clear for respondents. For this 

performance goal, the top two positive response options on the five-point scale were changed from “Considerable/Exceptional” to 

“Effective/Very Effective.”

2

 Due to the improvements to the AVS in FY 2014, including modifying the response scales (described above) and reducing the length 

of the questionnaire by half, results from FY 2010–13 (shaded in grey) may not be directly comparable to results in FY 2014 and future 

years. However, year-to-year comparisons of results from FY 2014 and future years will be possible. Additional information on the 

effects of the AVS changes on performance results may be found in Appendix 2, Verification and Validation of Performance Data.

Analysis: While the target was met, the result 

represents only 53 percent of the Volunteers who 

closed their service. In FY 2014, testing Volunteers 

at close of service was not a requirement for posts. 

Starting in FY 2015, the agency will require all 

posts that provide language training to Volunteers 

to conduct close of service language testing for all 

Volunteers. The agency expects results for this 

performance goal to change once all Volunteers are 

tested at close of service, but the agency does not yet 

have sufficient evidence to indicate the direction of 

that change.

Data Source: Peace Corps database 

Lead Office: Office of Overseas Programming 

and Training Support; Africa Region; Europe, 

Mediterranean, and Asia Region; Inter-America and 

the Pacific Region

47% 

Volunteers who 

were not tested at 

close of service

Volunteers who 

were tested at close 

of service 53%

63%

Percentage of Volunteers who are Tested and 

Percentage who Achieved an Advanced Level or Above

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 50% 55%

Result -- -- -- -- 63%
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 73

Performance Section

Due to the five-year rule—the unique law that limits the majority of U.S.-based and American overseas staff to 

five-year appointments—the Peace Corps is faced with high staff turnover that produces significant human capital 

and knowledge management challenges. The agency is cultivating a high-performing learning organization 

that invests in staff development, retains employees to the fullest extent of the law, and manages institutional 

knowledge to successfully advance the Peace Corps mission.

The Peace Corps is in the process of developing an agencywide staff development program and is considering 

pursuing legislative solutions to address the human capital and knowledge management challenges posed by the 

five-year rule. As the agency is in the initial stages of multiyear strategies to cultivate a high-performing learning 

organization, more progress is needed over time to reach this strategic objective.

Key Strategies and Activities:

• Invest in a learning management system: 

The agency has allocated resources toward 

the development of a centralized learning 

management system. When finalized, the 

new system will track and manage individual 

development plans for staff as well as staff 

training events. This will allow the agency to 

connect staff development needs with training 

opportunities and to budget more effectively for 

training. 

• Implement a leadership continuum for 

staff: The Peace Corps is in the early stages of 

developing a new entry to executive leadership 

continuum for staff. The agency redesigned 

its Leadership Development Academy and 

launched a supervisory training program. This 

leadership continuum program will develop 

the future leaders of the agency and contribute 

to the ongoing professional development of 

current leaders.

• Pursue legislative modifications to the fiveyear rule: In response to the 2012 Peace Corps 

Analysis: The target was met in FY 2014. However, 

the achievement may have been due to measurement 

changes resulting from improvements to the AVS in 

FY 2014. Targets for FY 2015 and future years have 

been adjusted upward based on the FY 2014 result. 

This performance goal measures the percentage of 

Volunteers who report their training was effective in 

preparing them to perform technical aspects of their 

work. Results in FY 2014 showed differences between 

the six programmatic sectors. Volunteers in the 

Education sector rated technical training the highest 

(69 percent), followed by Agriculture (65 percent), 

Youth in Development (64 percent), Environment 

(61 percent), Community Economic Development 

(60 percent), and Health (55 percent).

Data Source: Annual Volunteer Survey 

Lead Office: Office of Overseas Programming 

and Training Support; Africa Region; Europe, 

Mediterranean, and Asia Region; Inter-America and 

the Pacific Region

Strategic Objective 9: High-Performing Learning Organization

Cultivate a high-performing learning organization by investing in professional 

development for staff, improving staff retention, and strengthening 

institutional memory (Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Area for

improvement
74 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Office of Inspector General evaluation of the 

impacts of the five-year rule on agency operations 

(http://files.peacecorps.gov/multimedia/pdf/

policies/PC_Final_Evaluation_Report_on_

Impacts_of_the_Five_Year_Rule_IG1205E.

pdf), the agency is considering seeking 

legislative modifications to the five-year rule. 

The agency is committed to maintaining 

the spirit of the five-year rule—to permit 

the constant flow of new ideas and provide 

administrative flexibility—while addressing 

major management challenges that inhibit the 

agency’s ability to advance its goals. 

Performance Goal Results:

Performance Goal 9.1: Improve Staff Training 

Increase the percentage of staff satisfied1

 with the training they received to do 

their job to 62 percent by FY 2018

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target2 -- -- -- -- 54% 56%

Result3 U.S. direct hire staff 49% 50% 50% 57% 55%

Host country staff -- -- -- -- 62%

1

 Includes the top two positive response options on a five-point scale.

2

 The FY 2014 target only applies to U.S. direct hire staff and was based on actual results from the Employee Viewpoint Survey. Based 

on the collection of baseline data from host country staff through the Host Country Staff Survey (shaded in grey), targets for FY 2015 

and beyond apply to both U.S. direct hire and host country staff.

3

 FY 2014 results from the Employee Viewpoint Survey and Host Country Staff Survey are preliminary and will be updated with the

FY 2016 Annual Performance Plan to be issued with the FY 2016 Congressional Budget Justification in February 2015.

Analysis: The target was met for the U.S. direct hire 

respondent group. As the Host Country Staff Survey 

was first fielded in FY 2014, the agency did not have 

baseline data to set a target for the host country staff 

respondent group. Moving forward, the agency has 

set one target for both staff groups. 

It is important to note that the preliminary results 

from the Host Country Staff Survey are based on the 

58 percent of the staff who received and responded to 

the survey in its first year. This pool of respondents 

represents 38 percent of the overall pool of eligible 

staff. The remaining host country staff—who were 

eligible but did not respond—could not be reached 

with an invitation due to the lack of available email 

addresses. In FY 2015, Peace Corps will continue 

to reach out to eligible staff and improve the 

survey instrument and administration, including 

translating the survey into several languages and 

exploring alternatives to electronic submissions 

where necessary, to encourage broader participation 

in the survey. 

Staff responses to other questions provide additional 

insights into how the Peace Corps supports staff 

training and development. Staff responded that they 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 75

Performance Section

Performance Goal 9.2: Increase Staff Tenure

Increase the average tenure of U.S. direct hire staff 

FY 2014

Target

No target set

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

No target set; 

Baseline data 

collection

Result1 -- -- 3.3 years 4.1 years 3.7 years

1

 FY 2012–14 results are preliminary and based on the median years of tenure of staff who separated from the Peace Corps in each 

fiscal year. FY 2012–14 results and targets for FY 2016 and beyond will be provided in the FY 2016 Annual Performance Plan to be 

issued with the FY 2016 Congressional Budget Justification in February 2015.

55% 

62% 

76% 

66% 

75% 

69% 

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

U.S. Direct Hire staff Host Country staff

Respondent Population

Satisfaction with training Opportunity to improve skills Supervisors support development

Responses to Training and Development Questions

are given a real opportunity to improve their skills 

(76 percent and 66 percent of U.S. direct hire and 

host country staff respondents, respectively) and 

that supervisors in their units support employee 

development (75 percent and 69 percent of 

U.S. direct hire and host country staff respondents, 

respectively).

Data Source: Employee Viewpoint Survey and Host 

Country Staff Survey

Lead Office: Office of Human Resource 

Management, Office of Overseas Programming and 

Training Support
76 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Strategic Objective 10: Global Connectivity

Enable seamless communication and collaboration for all Volunteers and staff 

by modernizing and integrating information technology systems and

leveraging the innovation of Volunteers and staff in the field

(Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Area for

improvement

Analysis: This performance goal measures the 

average (calculated using the median) 

tenure of U.S. direct hire staff. Results 

are preliminary as only a subset of data is 

currently available. The agency will finalize 

FY 2010–14 results and set targets for FY 2016 

and future years as full records are collected from 

the USDA National Finance Center and analyzed. 

Preliminary results show that staff leave Peace Corps 

employment much earlier than is required due to the 

five-year rule. For employees who have separated 

since FY 2012, the average tenure was an estimated 

3.5 years. This calculation includes the staff who were 

granted extensions to serve beyond five years.1

 For 

the employees who served five years or less during 

the same time period, the average tenure was an 

estimated 2.9 years. The agency continues to employ 

multiple strategies to both increase staff tenure and 

mitigate the effects of high staff turnover, including 

pursuing legislative modifications to the five-year rule, 

improving the off-boarding process by collaborating 

with federal government employers to place staff with 

noncompetitive eligibility, and investing in learning 

and knowledge management systems.

Data Source: Peace Corps database 

Lead Office: Office of Human Resource Management

1

 The Peace Corps Act allows the Director to make appointments of more than five years for up to 15 percent of U.S. direct hire staff at 

any given time for employees who have demonstrated an exceptional record of performance in order to achieve one of the following 

purposes: to promote continuity of functions in administering the Peace Corps; to permit individuals who have worked at least 2.5 

years at overseas posts to work in the United States; to permit individuals who have worked at least 2.5 years in the United States 

to work at overseas posts; and to permit individuals working in a recruitment, selection, or training capacity to serve in another 

capacity. Additionally, the Director may, under special circumstances, approve an extension of appointment for up to one year on an 

individual basis.

The Peace Corps operates in areas of the world where the information technology (IT) infrastructure is not fully 

developed. At the same time, there is an increasing demand for modern tools to enable effective communication 

and collaboration among Volunteers and staff. The agency is building flexible IT systems that leverage modern 

technology to break down barriers to communication and collaboration.

The Peace Corps is on the cusp of major advances in modernizing and integrating IT systems; however, more 

progress is needed to fully enable seamless communication and collaboration for all Volunteers and staff.

Key Strategies and Activities:

• Build modern and flexible systems that 

improve data access: The Peace Corps has 

made progress on retiring old applications and 

developing new systems that are compatible 

with evolving technology. The agency retired 

19 out of 131 legacy applications in FY 2014. 

The agency also expects to transition fully to 

Microsoft SharePoint 2013 by the beginning of 

FY 2015.

• Develop and implement a comprehensive, 

agencywide IT strategy: To guide IT planning 

and future decision making, the agency 

initiated work on an independent assessment of 

its IT strategy and operations. The assessment 

will be conducted by a team of external experts 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 77

Performance Section

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 10% 30%

Result -- -- -- -- 15%

Analysis: In FY 2014, the agency completed an audit 

of its legacy applications—defined as systems based 

on an outdated technology that is no longer fully 

supported by the Peace Corps. Through the audit, 

the agency identified 131 legacy applications, 46 of 

which are low-impact applications that can be retired 

without replacement. The remaining 85 applications 

will be considered for consolidation into the platform 

modernization project. In FY 2014, 19 low-impact 

applications were retired.

Data Source: Peace Corps administrative records 

Lead Office: Office of the Chief Information Officer

and will result in a forward-looking strategy for 

supporting staff and Volunteers with the most 

effective technology. The assessment team 

will also identify how best to align IT resource 

decisions with the long-term, agencywide IT 

strategy.

• Improve the agency’s knowledge-exchange 

platform: The agency updated the technology 

for PCLive—the Peace Corps’ knowledge and 

information exchange platform for Volunteers 

and staff in FY 2014. Through PCLive, 

Volunteers and staff can search for materials, 

share resources, ask questions, and connect 

with other Volunteers and staff from around 

the world. Volunteers and staff can upload 

documents to share with others; in FY 2014, the 

agency digitized all of the agency’s Volunteer 

programming, training, and evaluation 

publications, as well as nearly 1,500 other 

learning resources and placed them in PCLive.

Performance Goal Results:

Performance Goal 10.1: Develop an Integrated Technology Platform 

Retire all legacy applications and consolidate functions into an integrated 

platform by FY 2018

FY 2014

Target

ü

Performance Goal 10.2: Facilitate Knowledge Sharing 

Increase the percentage of Volunteers who report that they use the digital 

materials provided by the Peace Corps in their work to 85 percent by FY 2016

FY 2014

Target

No Target set
78 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Analysis: This performance goal measures the 

frequency of Volunteers’ use of the digital materials 

provided by the Peace Corps in their work, including 

materials received by email or downloaded through 

knowledge-sharing platforms such as PCLive. This 

question was included in the Annual Volunteer 

Survey for the first time in FY 2014. While Volunteers 

reported high usage of Peace Corps digital materials, 

survey results suggest that infrequent internet access 

is one constraint for Volunteers in fully utilizing 

the digital materials provided by the Peace Corps. 

Volunteers with frequent access to the internet 

(daily or weekly) reported higher usage of Peace 

Corps digital materials (79 percent) than Volunteers 

with less than monthly or no access to the internet

(71 percent).

Data Source: Annual Volunteer Survey 

Lead Office: Office of Overseas Programming and 

Training Support

Strategic Objective 11: Measurement for Results 

Advance the agency’s ability to measure progress, improve performance, and 

demonstrate impact through integrated monitoring, reporting, and evaluation 

practices (Supports Strategic Goals 1, 2, and 3)

FY 2014

Status

Noteworthy 

progress 

Key Strategies and Activities:

• Increase the monitoring, reporting, and 

evaluation (MRE) capacity of Volunteers 

and staff: The agency provided additional 

staffing resources and training to increase 

the MRE capacity of Volunteers and staff. All 

Volunteers receive standard MRE training 

during pre-service training. Additionally, all 

posts received detailed training on the new 

Volunteer Reporting Tool (VRT)—Volunteers’ 

primary monitoring and reporting mechanism 

for their work. The agency also increased MRE 

staff at overseas posts and at headquarters to 

respond to new and expanding monitoring and 

reporting tasks. 

• Collect baseline data for new country 

entries and new Volunteer projects: The 

Peace Corps successfully launched the baseline 

data collection study in Kosovo—the sole new 

country entry in FY 2014. The agency expects to 

conduct similar studies for new country entries 

and country re-entries planned in FY 2015, 

including Burma, Comoros, and Timor Leste. 

Possible new Volunteer projects include a Youth 

in Development project in Jordan. Baseline 

data collected through these studies will inform 

eventual impact evaluations, which will provide 

the agency with evidence of Volunteers’ impact.

• Develop new data sources and improve 

existing data sources: The agency developed 

two new surveys in FY 2014—the Global 

Counterpart Survey and the Host Country Staff 

Survey—and made significant improvements 

to the AVS and the VRT. Both the Global 

Counterpart Survey and Host Country 

Staff Survey provide information from key 

stakeholders that the agency has never 

The Peace Corps nurtures a culture of performance improvement where all staff and Volunteers have a role 

in using evidence to make decisions and in measuring and assessing the results of the their work. The agency 

integrates and supports monitoring, reporting, and evaluation practices by providing training and guidance 

to staff and Volunteers, developing and improving data sources, conducting studies of agency programs, and 

evaluating the long-term impact of Volunteers. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 79

Performance Section

before surveyed systematically—Volunteer 

counterparts and host country national staff, 

respectively. Improvements to the AVS—which 

included a reduction in the number of questions 

asked of Volunteers and the use of balanced 

scales—significantly increased the quality of 

the data. The agency continued to improve the 

VRT by enhancing reporting functions and 

instituting additional data quality controls. 

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 50% 75%

Result -- -- -- -- 0%

Performance Goal Results:

Performance Goal 11.1: Conduct Baselines 

Increase the percentage of new country entries and new Volunteer project 

frameworks where baseline data has been collected or compiled prior to the 

beginning of the intervention to 100 percent by FY 2016

FY 2014

Target

û

Analysis: The agency successfully initiated the 

baseline data collection study in Kosovo—the one 

new country entry in FY 2014. The Volunteer 

project in Kosovo is focused on education, and the 

study will collect baseline data on the skills of local 

English teachers, student English proficiency, and 

attitudes about Americans in support of the Peace 

Corps’ Strategic Goal Two. The data collected and 

the analysis of the results will eventually inform 

an evaluation of the impact of Volunteers working 

in the country. However, for the reasons outlined 

below, baseline data was not collected prior to the 

arrival of Volunteers at their sites, as required by the 

performance goal, so the FY 2014 target was not met. 

In many cases, the collection of baseline data 

collection, particularly for projects in the Education 

sector, will only be possible after Volunteers have 

arrived at their sites. In the case of Education 

projects, many primary baseline data collection 

activities cannot take place until the school year 

begins and students and teachers are available for 

interviews and observation. As Volunteers typically 

arrive at their sites at the beginning of the school 

year, baseline data collection necessarily begins after 

Volunteers’ arrival.

Moving forward, the agency will modify the 

performance goal to allow for the collection of 

baseline data either before the arrival of Volunteers or 

for a short period after their arrival. This modification 

allows the agency to collect baseline data during the 

time period when data are most available while still 

maintaining methodological rigor. 

Data Source: Peace Corps administrative records

Lead Office: Office of Global Operations; Office of 

Strategic Information, Research, and Planning
80 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

:

Performance Goal 11.2: Increase Evidence-Based Decisions 

Increase the percentage of posts and headquarters offices that demonstrate 

the use of evidence in program, policy, and/or budget decisions

to 100 percent by FY 2016

FY 2014

Target

ü

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- -- 50% 75%

Result -- -- -- -- 68%

Analysis: This performance goal is measured through 

an annual data call to posts and headquarters offices, 

and the question that informs this performance 

goal was first asked in FY 2014. Both posts and 

headquarters offices exceeded the FY 2014 target 

(69 and 64 percent, respectively), demonstrating 

notable examples of evidence-based decision making 

across the agency. The majority of posts utilized 

insights from Annual Volunteer Survey data to 

improve their programs. For example, the program 

in Peru modified its Volunteer homestay policy 

based on data from the Annual Volunteer Survey, 

triangulated with data from a survey of Volunteers on 

their homestay experience, one-on-one interviews 

with Volunteers, and internet research on the topic. 

As a result of this analysis, the post modified its 

policy to allow Volunteers to choose whether or not 

they live with a host family. Detailed results from this 

performance goal will be shared with all posts and 

headquarters offices to encourage the sharing of best 

practices in evidence-based decision making.

Data Source: Peace Corps administrative records 

Lead Office: Office of Strategic Information, 

Research, and Planning

:

Performance Goal 11.3: Using Evidence to Encourage Innovation 

Increase the percentage of posts and headquarters offices that conduct 

structured pilots to test new approaches to advance programmatic goals

and/or address management challenges

FY 2014

Target

No Target set

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target -- -- -- --

No target set; 

Baseline data 

collection

No target set; 

Baseline data 

collection

Result -- -- -- -- 70%
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 81

Performance Section

Analysis: This performance goal is measured through 

an annual data call to posts and headquarters offices, 

and the question that informs this performance goal 

was first asked in FY 2014. The agency will continue 

to collect baseline data in FY 2015 to inform the 

development of guidance regarding the use of 

structured pilots, including protocols for identifying 

potential pilot programs, establishing project 

baselines, testing new approaches through iteration, 

evaluating results, and scaling-up or ending pilot 

programs. The use of standard criteria and rigorous 

measurement will enable the agency to learn from 

pilots and determine if they should be fully adopted. 

While standard criteria have not yet been developed 

for conducting structured pilots, several posts and 

headquarters offices provided notable examples of 

pilot programs in FY 2014. The program in Georgia, 

for example, piloted a new site placement model to 

better serve ethnic minority communities. Rather 

than placing Volunteers in the two-year program 

in these communities, the post placed Peace Corps 

Response Volunteers—returned Volunteers from 

Azerbaijan with strong technical skills, proficiency 

in the Azeri language, and a strong understanding of 

how to live and work effectively in the Azeri culture. 

Through the pilot, the post concluded that the model 

was effective in better meeting the needs of ethnic 

minority communities. The post is expanding the 

model to include the placement of recently returned 

Volunteers from Armenia to be placed in ethnic 

Armenian communities.

Data Source: Peace Corps administrative records 

Lead Office: Office of Strategic Information, 

Research, and Planning
82 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

The Peace Corps made significant progress in FY 2014 in strengthening its evaluation and research practices. 

Evaluation and research are critical to achieving a better understanding of agency performance on strategic 

objectives, providing actionable information to decision makers, and demonstrating the impact of Volunteers to 

stakeholders. 

Descriptions of the major evaluation and research activities conducted by the agency in FY 2014, as well as how they 

relate to agency strategic objectives, are provided below. Activities in FY 2014 relate to expanding and improving 

sources of evidence; generating new insights through research; evaluating Peace Corps processes, initiatives, 

and impact; piloting new approaches to solve persistent problems; and strengthening the agency’s capacity to use 

evidence.

Summaries of performance audits and evaluations conducted by the Office of Inspector General are also provided 

in this section. Publicly available evaluation and research results and other data may be found at www.peacecorps.

gov/open.

Evaluation and Research
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 83

Performance Section

Major Evaluation and Research Activities in FY 2014

Expanding and improving sources of evidence Related Strategic Objective

Improvements to the Annual Volunteer Survey. The Annual 

Volunteer Survey (AVS) is one of the primary sources of evidence 

utilized by the agency to improve operations. In FY 2014, the agency 

substantially redesigned the survey questionnaire to improve 

data quality by reducing measurement error and strengthening 

respondent confidentiality. Based on a comprehensive review of prior 

survey questionnaires and item analysis, the agency significantly 

shortened the survey questionnaire, reducing the response time by 

half (from a median of 56 minutes in 2013 to 28 minutes in 2014). 

The agency also modified the response scales for a number of 

questions—from an unbalanced to a balanced format—to make the 

positive, neutral, and negative options more clear for respondents. 

As a result of these improvements to the AVS, the agency will have a 

more accurate understanding of the perspectives of Volunteers.

1.Volunteer Well-Being

2. Service Opportunity 

of Choice

3. Development Impact

4.Cross-Cultural 

Understanding

6. Diversity and 

Inclusion

7. Site Development

8. Train-Up

10. Global Connectivity

Redesign of the Volunteer Reporting Tool. In FY 2014, the agency 

completed a major redesign of the Volunteer Reporting Tool (VRT). 

The redesigned VRT has a more intuitive user interface, and allows 

for the global aggregation of Volunteer activity data. The redesigned 

VRT is structured based on the new Volunteer project frameworks, 

providing a connection between Volunteer accomplishments and 

the goals and objectives of their projects. These advancements 

enable the agency to more easily and accurately track the progress 

that Volunteers are making on their projects and report high-quality 

data on the outcomes of Volunteer activities to agency strategic 

partners such as Feed the Future and the President’s Emergency 

Plan for AIDS Relief. As a result, the agency has more data to inform 

the design of Volunteer projects and better demonstrate the impact 

of Volunteers.

3. Development Impact
84 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Expanding and improving sources of evidence Related Strategic Objective

Global Counterpart Survey. Upon the completion of a pilot study 

with 14 posts in FY 2013, the agency began administering the first 

Global Counterpart Survey to all posts in February 2014. The survey 

is designed to provide information on the impact of Volunteers on 

local communities from the perspectives of Volunteers’ primary 

work partners. The agency surveyed approximately 25 percent of 

counterparts in FY 2014.

3. Development Impact

4. Cross-Cultural 

Understanding

Host Country Staff Survey. In FY 2014, the Peace Corps launched 

its first agencywide survey to systematically gather perspectives 

from host country staff. The survey in FY 2014 included questions 

related to staff training and the degree to which the Peace Corps has 

an inclusive culture. The survey will be expanded in future years to 

cover additional post operations and support topics.

6. Diversity and 

Inclusion

9. High-Performing 

Learning Organization
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 85

Performance Section

Generating new insights through research Related Strategic Objective

Analysis of the drivers of Volunteer effectiveness. Based on the 

2013 AVS data, the agency conducted an analysis of the key drivers 

of perceived Volunteer effectiveness. Applying advanced statistical 

analysis techniques, the agency found that the strongest stand-alone 

drivers of Volunteer effectiveness were the amount of gain in their 

theoretical and practical knowledge through Peace Corps training 

and field experience and the ongoing agency support of work-related 

functions provided to Volunteers. The analysis identified specific 

areas for improvement—Volunteer training and site development, 

management, and support—which are likely to yield the greatest 

increases in Volunteer effectiveness. The complete study results 

may be found in the 2013 Annual Volunteer Survey Report: Voice 

of the Volunteer at http://files.peacecorps.gov/multimedia/pdf/

opengov/2013_Voice%20of%20the%20Volunteer_July-3-14.pdf. 

1. Volunteer Well-Being

3. Development Impact

4. Cross-Cultural 

Understanding

7. Site Development

8. Train-Up

Market research on core Volunteer prospects and their 

primary influencers. The agency is in the process of conducting a 

multiphase market research project to better understand the Peace 

Corps’ brand perception among core prospects, future prospects, 

and their primary influencers. The project will also enhance the 

agency’s understanding of the barriers to service among core and 

future prospects. The agency fielded initial questions in an online 

omnibus survey; the results informed the design of online qualitative 

research and live focus groups which will be fielded in FY 2015. 

Following the completion of the qualitative research, the agency 

will conduct large-scale quantitative research to help inform future 

messaging and marketing to prospective Volunteers.

2. Service Opportunity 

of Choice
86 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Generating new insights through research Related Strategic Objective

Positive deviance approach to identify best practices in 

Volunteer health care. In August 2014, the Peace Corps 

convened a meeting of the top nine health units at overseas 

posts to better understand how they have achieved a high 

level of performance. The approach was designed to glean best 

practices from top performers, look for commonalities, and 

subsequently build the skills of medical units and improve 

health outcomes at posts with lower levels of performance. 

Through this approach, the agency will capitalize on the 

experience of experts in the field to enhance the support of 

Volunteers.

1. Volunteer WellBeing
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Performance Section

Evaluating Peace Corps processes, initiatives, and impact Related Strategic Objective

Volunteer Delivery System evaluation. The agency is in the 

preliminary stages of evaluating the effectiveness and impact of 

recent reforms to the Volunteer Delivery System. These reforms 

include changes to the application and selection process, a 

reorganization of the Office of Volunteer Recruitment and Selection, 

an increase in recruitment and placement staff, and investments 

in technology and public outreach. Potential evaluation topics may 

include the process through which the reforms were developed 

and implemented and the impact of the reforms on agency goals, 

including the number, quality, and diversity of applicants. The first 

phase of the evaluation is expected to be completed in FY 2015 to 

inform resource decisions for FY 2016 and beyond.

2. Service Opportunity 

of Choice 

Quasi-experimental impact evaluation of the program in 

Kosovo. In FY 2014, the agency initiated the collection of baseline 

data for the new Volunteer program in Kosovo—the first stage of an 

eventual quasi-experimental impact evaluation. Over the course 

of the five year project, the agency will collect data to evaluate the 

impact of Volunteers on the overall Kosovar education system, 

teacher proficiency in English and teaching methods, student 

proficiency in English, and community members’ perceptions of 

Americans. Data will be collected from two comparison groups—

communities where Volunteers serve and those that do not have a 

Volunteer. When completed, the evaluation is expected to provide 

clear evidence on the impact of Volunteers on development and 

cross-cultural outcomes. The agency expects to initiate similar 

evaluations for the new country entries and re-entries planned in 

FY 2015 (Burma, Comoros, and Timor Leste) as well as a new 

Volunteer project in Jordan (Youth in Development).

3. Development Impact

4. Cross-Cultural 

Understanding

11. Measurement for 

Results
88 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Evaluating Peace Corps processes, initiatives, and impact Related Strategic Objective

Country Portfolio Review. Each year, the agency conducts a 

comprehensive review of active and potential Peace Corps posts 

based on external and internal data. The Country Portfolio Review 

informs decisions about new country entries, country graduations 

(closures), and the allocations of Volunteers and other resources. 

The review conducted in FY 2014 focused on Volunteer safety and 

security, medical infrastructure, host country need, development 

impact, cross-cultural impact, host country commitment and 

engagement, post management, congruence with U.S. government 

development priorities, and cost. The review included data from 

the following external sources: the World Bank, United Nations 

Development Programme, the United Nations Office on Drugs and 

Crime, the U.S. Department of State, the Pew Research Center, 

Transparency International, the International Disaster Database, 

and the World Health Organization. Internal data sources included 

administrative and financial data, results from surveys of post staff, 

and AVS results. Through the review, the agency found regional 

disparities in both the complexity of operating environments and 

agency resource allocations. As a result, the agency reexamined 

staffing ratios at posts around the world in order to ensure that posts 

operating in particularly complex environments are adequately 

resourced to provide the highest possible quality of support to 

Volunteers.

1. Volunteer Well-Being

2. Service Opportunity 

of Choice

3. Development Impact

4. Cross-Cultural 

Understanding

7. Site Development

8. Train-Up

Global analysis of the Host Country Impact Studies. The agency 

initiated a global analysis of the Host Country Impact Studies 

conducted between 2008–11. These country- and project-specific 

studies were designed to measure how effectively Volunteers’ 

activities met the technical needs of host countries and promoted a 

better understanding of Americans. A global analysis of these studies 

will provide the agency and external stakeholders with additional 

information and insights on the impact of Volunteers across 

several countries and projects. In FY 2014, the agency finalized the 

remaining technical reports and two-page summaries for the Host 

Country Impact Studies and made all of the studies and summaries 

available to the general public. The reports and summaries of all 

24 studies are available at http://www.peacecorps.gov/about/open/

evaluations/.

3. Development Impact

4. Cross-Cultural 

Understanding
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 89

Performance Section

Evaluating Peace Corps processes, initiatives, and impact Related Strategic Objective

Case study on the effects of Volunteers on smallpox eradication. 

In FY 2014, the agency studied the impact of Volunteers on smallpox 

eradication in the 1960s and ’70s. The case study was informed by 

written records, recordings of interviews conducted by the Centers 

for Disease Control and Prevention, and additional interviews 

conducted by Peace Corps staff of Volunteers who participated in 

smallpox eradication projects during their service in Afghanistan, 

Ethiopia, and Zaire. The study is in progress, and the agency 

expects to publish findings in FY 2015. Initial findings provide 

evidence of the contributions of Volunteers to the global effort to 

eradicate smallpox as well as the effect of the eradication campaigns 

on the future careers of the Volunteers, many of whom leveraged 

their experience as Volunteers to play key roles in international 

eradication programs through the U.S. Agency for International 

Development, the Centers for Disease Control and Prevention, and 

the World Health Organization. In recalling the contributions of 

volunteers from the Peace Corps and other countries, the former 

head of the international eradication program at the World Health 

Organization noted, “As I look back on events, I doubt very much that 

without the [Peace Corps’] input into these countries that we would 

have succeeded in sustaining the momentum of a global effort that 

required a group of determined young people who ignored the fact 

that many had pronounced the goal as ‘unachievable.’” (January 

2014 email) The agency also plans to conduct case studies on the 

contributions of Volunteers on polio and guinea worm eradication.

3. Development Impact

5. Continuation of 

Service

Process evaluation of the Master Farmer Program in Senegal. 

The agency conducted an evaluation of the Master Farmer Program 

in Senegal—a program supported through a partnership with the U.S. 

Agency for International Development through the Feed the Future 

initiative. The goal of the Master Farmer Program is to improve 

food security for farmers and their families through the adoption 

of effective agriculture and agroforestry technologies. Through 

the process evaluation, the agency assessed the degree to which 

the program is meeting its intended objectives to provide Master 

Farmers with appropriate resources to develop a Master farm, 

3. Development Impact
90 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Evaluating Peace Corps processes, initiatives, and impact Related Strategic Objective

support Master Farmers to conduct relevant trainings, and promote 

adoption of improved agricultural technologies and management 

practices by local farmers. Through direct observation, a review 

of secondary information about the program, and structured 

interviews with key informants and program participants, the agency 

found evidence that the program contributed to advances in food 

security and the use of effective agricultural technologies in local 

communities. The agency also found opportunities for improvement, 

including the need to decentralize program management and 

encourage Master Farmers’ knowledge and skill development.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 91

Performance Section

Piloting new approaches to solve persistent problems Related Strategic Objective

Vehicle fleet sustainability and cost-savings. The Peace Corps is 

testing new approaches to both “green” the vehicle fleet and achieve 

cost-savings in transportation. In FY 2014, the agency piloted a 

contract with a car-sharing company for the Midwest Regional 

Office in Chicago. Regional recruitment offices typically utilize 

vehicles purchased through the General Services Administration 

for use during recruitment trips to colleges, universities, and 

communities. The pilot tested the degree to which car-sharing 

provided recruitment staff with adequate access to transportation 

while simultaneously generating cost savings. In light of the results 

achieved through the pilot, the agency established a nationwide 

car-sharing contract for use by staff in all regional recruitment 

offices beginning in FY 2015. The agency is also piloting the use 

of a small fleet of Smart cars, wrapped with the Peace Corps logo, 

for recruitment and promotional activities. These “Peace Cars” 

are expected to reduce the agency’s carbon footprint, reduce 

transportation costs, and increase awareness of the Peace Corps.

2. Service Opportunity 

of Choice

Volunteer location mapping tool. The agency piloted and 

launched a tool for posts to develop interactive maps of Volunteer 

locations to improve the accuracy of the existing Volunteer 

locator forms utilized at posts. Developed originally by the 

Senegal post, the new tool will improve the site management 

process by providing a more accurate picture of Volunteer 

distributions across different regions in a country and will 

enhance each post’s emergency action plan by providing a clear 

record and visual representation of each Volunteer’s location. 

1.Volunteer Well-Being

7. Site Development

10. Global Connectivity
92 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Strengthening agency capacity to use evidence Related Strategic Objective

Monitoring, reporting, and evaluation (MRE) task force. 

The agency established an MRE task force to clarify the roles, 

responsibilities, and opportunities for collaboration among 

the offices and staff with evaluation and research functions. 

Monitoring, reporting, and evaluation practices are conducted 

at all levels within the agency. Through the task force, the agency 

will advance an integrated approach to MRE that expands and 

rationalizes the dissemination of data, information, and evidence 

to support well-informed decision making.

11. Measurement for 

Results

Office- and system-based dashboards. The agency developed 

new dashboards for several offices and major systems to 

provide agency leadership and staff with timely, actionable, 

and meaningful information to inform decisions. In FY 2014, 

the agency implemented an agencywide dashboard to monitor 

the Volunteer Delivery System—the system for requesting, 

recruiting, selecting, and fielding Volunteers. The Europe, 

Mediterranean, and Asia Region; the Office of the Chief 

Information Officer; the Office of Global Operations; and, the 

Office of the Third Goal and Returned Volunteer Services have 

also developed dashboards for internal management purposes.

11. Measurement for 

Results

Investments in MRE capacity at posts. The agency 

enhanced the MRE skills of staff at overseas posts 

through targeted workshops and trainings related to data 

collection, analysis, and reporting. The agency is also in 

the process of increasing MRE staff at posts to support 

decision-making processes at posts and headquarters.

11. Measurement for 

Results
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 93

Performance Section

Final Evaluation Report 

on the Peace Corps 

Sexual Assault Risk 

Reduction and Response 

Training (IG-14-01-E)

The OIG evaluated the effectiveness and implementation of the 

sexual assault risk reduction and response training for Volunteers, 

including the information provided to applicants as mandated by 

the Kate Puzey Peace Corps Volunteer Protection Act of 2011, the 

use of field experts and best practices in the design of the sexual 

assault training, the extent to which the sexual assault training 

was tailored to the Volunteers’ country of service, and the overall 

effectiveness of the sexual assault training among Volunteers.

Final Evaluation Report 

on the Peace Corps 

Volunteer Sexual Assault 

Policy (IG-14-02-E)

The OIG evaluated the effectiveness and implementation of the 

sexual assault policy, including a case review of a statistically 

significant number of cases. The evaluation focused on the 

implementation of a sexual assault policy that complies with 

the Kate Puzey Peace Corps Volunteer Protection Act of 2011, 

implementation of a mandatory training program for all overseas 

staff on the Peace Corps’ sexual assault policy, and implementation 

of services for all victims of sexual assault as mandated by the Kate 

Puzey Act. 

Special Review: Lessons 

Learned from New 

Country Entries

The OIG synthesized and highlighted lessons learned from previous 

OIG reports to provide insight and guidance on the opening or 

re-opening of posts. Through a review of 33 OIG reports issued from 

1990–2013 on newly opened or re-opened posts, the study addresses 

what strategies and best practices have proven effective in opening 

new posts, what common challenges were encountered in opening 

new posts, and the extent to which the agency has adequately 

addressed the challenges of opening posts.

Audits and Evaluations conducted by the Office of Inspector General

The Peace Corps Office of Inspector General (OIG) regularly conducts audits and evaluations of the effectiveness 

of programs that support Volunteers. The objectives of OIG audits and evaluations vary by project, but most aim 

to recommend improvements that will increase the effectiveness and efficiency of Peace Corps operations and 

strengthen the agency’s ability to implement country programs that increase host country capacity. OIG audits 

and evaluations are submitted to agency leadership, which then takes appropriate action to address the concerns 

that have been identified. Open recommendations are tracked by the agency’s chief compliance officer, who is 

responsible for assuring that actions are documented and advising OIG when actions have been confirmed. 

The OIG conducted the following program evaluations and performance audits in FY 2014. A complete list of 

all OIG audits and evaluations conducted during FY 2014 may be found at http://www.peacecorps.gov/about/

inspgen/reports/.
94 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Performance Section

Country Program 

Evaluations

Peace Corps/Ecuador (IG-14-03-E)

Peace Corps/Mexico (IG-14-04-E)

Peace Corps/Armenia (IG-14-05-E)

Peace Corps/Philippines (IG-14-06-E)

Through country program evaluations, the OIG assessed the extent 

to which each post developed and implemented programs intended 

to increase the capacity of host country communities to meet 

their own technical needs. Programs were generally evaluated 

across four focus areas: project objectives, site development and 

monitoring, coordination with host country project partners, and 

counterpart selection.

Final Audit Report: Peace Corps 

Overseas Staffing (IG-14-01-A)

The objectives of the OIG audit were to determine how country 

directors are hired and terminated; determine how overseas staff 

are hired; and assess how country directors are evaluated. Two 

primary focus areas in the audit include how the performance plans 

mandated by the Kate Puzey Peace Corps Volunteer Protection 

Act of 2011 have been implemented and how Volunteer feedback 

provided in the AVS was considered. 

Final Report on the Audit 

of Peace Corps Applicant 

Screening Process (IG-14-04-A)

The objectives of the OIG audit were to determine whether the 

Office of Volunteer Recruitment and Selection had sufficient and 

reliable information to make appropriate suitability and eligibility 

determinations for Volunteer applicants; determine whether the 

Peace Corps’ applicant screening process was consistent with the 

screening practices of other major volunteer organizations; and 

evaluate the prevalence, characteristics, and outcomes of serious 

Volunteer misconduct.
Financial Section
96 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

The agency achieved an unmodified (clean) audit opinion on the financial statements during the FY 2014 

financial statement audit and no material weaknesses were identified. There were, though, three instances of 

noncompliance with laws and regulations identified and one nonconformance with financial management 

system requirements for the Federal Information Security Management Act of 2002. Additionally, three 

significant deficiencies were identified in the audit report. The current status of the significant deficiencies, the 

noncompliances, and the system nonconformance are shown in Appendix 1 along with corrective actions.

While the agency received an unmodified (clean) audit opinion on its FY 2013 financial statement preparation, 

one material weakness, three significant deficiencies, and three instances of noncompliance with laws and 

regulations were identified during the Kearney & Company FY 2013 financial statement audit and the FY 2012 

financial statements were restated. Prior to this audit, no material weaknesses had been identified since FY 2006 

and there were no prior instances of noncompliance with laws and regulations. 

This year, my staff worked very hard and resolved the financial management analysis and reporting material 

weakness identified in FY 2013 by strengthening review and oversight internal controls, ensuring fund balances 

were properly reported and maintaining a constant review of the calculation of Separation Liabilities for the 

Foreign Service Nationals (FSN) and the Personal Services Contractors (PSC). Treatment of the Proceeds of 

Sale and the Estimation of Collections were properly reported in FY 2014, and there are no further issues. We 

remain firmly committed to attaining the highest standard for financial accountability and reporting and have 

redoubled our efforts toward achieving that goal. 

Although my staff and managers across the agency worked to resolve the three significant deficiencies in 

internal control identified in the FY 2013 financial statement audit, those efforts were not sufficient to eliminate 

all significant deficiencies, only the Accounts Payable Accrual Significant Deficiency. There, we refined the 

methodology for review of the Accounts Payable Accrual (New condition in FY 2013) and trained contract officer 

technical representatives and internal CFO staff in order to resolve this audit condition. 

The significant deficiencies that remain open from the FY 2013 audit are Property, Plant, and Equipment 

(Repeat Condition), and Information Technology Security (Repeat Condition). Resolution of the Property, 

Plant, and Equipment (PP&E) is expected during FY 2015 when full implementation of the newly acquired 

Asset Management System occurs. The contract was recently awarded for this system and a major project is 

underway involving several organizations responsible for the reporting and management of PP&E. Information 

Technology Security corrective actions include securing a centrally located federal repository for Plan of Action 

and Milestones mitigation and purchasing AlienVault Security Information and Event Management (SIEMs) for 

continuous monitoring of the EMA posts. See Appendix 1 for corrective actions completed for these significant 

deficiencies and planned for the future.

Message from the Chief Financial Officer
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 97

Financial Section

The three new instances of noncompliance with laws and regulations cited in the FY 2013 financial statement 

audit were (1) OMB Circular A-11, Preparation, Submission, and Execution of the Budget, (2) Federal Managers’ 

Financial Integrity Act (FMFIA) of 1982 and (3) Federal Information Security Management Act (FISMA) 

of 2002. Proper financial reporting by the agency on the Statement of Budgetary Resources, and the SF 132, 

Apportionment and Reapportionment Schedule, was accomplished during FY 2014 that satisfied the OMB 

Circular A-11 and the FMFIA noncompliances. During FY 2014, all FISMA System Inventory boundaries 

were identified and actions are in progress to identify and analyze all external connections. See Appendix 1 for 

corrective actions completed for this noncompliance and planned for the future. 

In FY 2014, the agency was appropriated $379 million to accomplish our mission and more fully support the work 

of the Volunteers through their 27 months of service. This compares favorably with the slightly more than $356 

million appropriated during FY 2013 with its sequestration budget cuts. As of September 30, the Peace Corps 

was actively operating in 64 countries and had processed financial transactions in 75 currencies during the year.

The successful evacuation in August of Guinea, Liberia, and Sierra Leone at one time due to the spread of Ebola 

in West Africa caused widespread financial issues with critical time constraints, proper payments, logistical 

support, and extra staffing hours. 

During FY 2014, the following financial management improvements were implemented:

• Became a full “CARS” Reporter (Central Accounting and Reporting System) under the Treasury’s 

Government Wide Accounting initiative by redesigning payment and collections processing and 

financial reporting

• Launched page on the FOREIGNASSISTANCE.GOV website for the reporting of historical and 

quarterly financial information by Peace Corps country and program sector, including Peace Corps’ 

spending of President’s Emergency Plan for AIDS Relief (PEPFAR) funds

• Completed the projected update to Hyperion Planning (the budget formulation and analysis software 

used by the agency) to provide posts and domestic offices with enhanced functionality and to stay current 

with other Information Technology (IT) infrastructure improvements

• Successfully transitioned the agency month-end balance reporting via the Governmentwide Treasury 

Account Symbol Adjusted Trial Balance System beginning in Quarter 1

• Incorporated the Office of Acquisitions and Contracts Management into the CFO to gain greater 

efficiencies in operation and coordination efforts
98 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

Looking forward to FY 2015, the agency will submit data reports to OMB during the phased implementation of 

the Digital Accountability and Transparency Act of 2014 (DATA ACT). In FY 2016, the DATA ACT will require 

agencies to publicly report detailed spending data on USASpending.gov, moving toward governmentwide 

standards for financial data and streamlining agency reporting requirements.

The audited financial statements and notes that follow are reliable and complete and were prepared in accordance 

with generally accepted accounting principles for federal government entities.

My staff and the financial management personnel located throughout the regions, posts, and headquarters offices 

continuously work toward achieving new financial management improvements with the goal of improving the 

lives of our Volunteers. Our efforts continue to promote more effective internal controls and to resolve audit 

recommendations.

Joseph L. Hepp, Jr.

Chief Financial Officer

November 17, 2014
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 99

Financial Section

Financial Statements

2014 2013

Assets

Intragovernmental

Fund Balance With Treasury (Notes 2 and 3) $ 211,369 $ 188,687

Accounts Receivable (Note 4) 2,758 2,958

Total Intragovernmental 214,127 191,645

Accounts Receivable, Net (Note 4) 334 208

General Property, Plant, and Equipment, Net (Note 5) 34,556 29,987

Other

Prepaid Volunteer Living Allowances (Note 6) 1,836 2,010

Other Assets (Note 7) 3,890 3,440

Total Assets $ 254,743 $ 227,290

Liabilities

Intragovernmental 

Accounts Payable $ 396 $ 1,074

Other

Unfunded FECA Liability (Note 8) 33,348 32,297

Other Liabilities (Note 9) 71 224

Total Intragovernmental 33,815 33,595

Accounts Payable 9,487 10,887

Federal Employee and Veterans Benefits (Note 8) 149,107 153,397

Other

Other Employment Related Liability (Note 8) 333 98

Non-Entity Funds (Note 2) 20,225 23,400

Accrued Funded Payroll and Leave 3,253 2,394

Unfunded Annual Leave (Note 8) 10,289 9,755

Other Liabilities (Notes 9 and 11)

FSN and PSC Severance Liability 25,849 24,643

Other Liabilities 202 935

Total Liabilities 252,560 259,104

Commitments and Contingencies (Note 11)

Net Position

Unexpended Appropriations 158,343 129,818

Cumulative Results of Operations (156,160) (161,632)

Total Net Position $ 2,183 $ (31,814)

Total Liabilities and Net Position $ 254,743 $ 227,290

Peace Corps

Balance Sheets

As of September 30, 2014 and 2013

(In Thousands)

The accompanying notes are an integral part of these statements
100 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

2014 2013

Program Costs:

Gross Costs $ 364,502 $ 381,873

Less: Earned Revenue (Note 12) (10,040) (10,031)

Net Cost of Operations $ 354,462 $ 371,842

Peace Corps

Statements of Net Cost

For The Years Ended September 30, 2014 and 2013

(In Thousands)

The accompanying notes are an integral part of these statements
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 101

Financial Section

2014 2013

Cumulative Results of Operations:

Beginning Balances $ (161,632) $ (140,283)

Budgetary Financing Sources:

Appropriations Used 350,413 339,336

Donations and Forfeitures of Cash and Cash Equivalents 2,846 387

Transfers-In/Out Without Reimbursement - 5,280

Other Financing Sources (Non-Exchange):

Transfers-In/Out Without Reimbursement 510 (154)

Imputed Financing (Note 18) 6,165 5,644

Total Financing Sources 359,934 350,493

Net Cost of Operations 354,462 371,842

Net Change 5,472 (21,349)

Cumulative Results of Operations (156,160) (161,632)

Unexpended Appropriations:

Beginning Balance 129,818 114,526

Budgetary Financing Sources:

Appropriations Received 379,000 375,000

Other Adjustments (62) (20,372)

Appropriations Used (350,413) (339,336)

Total Budgetary Financing Sources 28,525 15,292

Total Unexpended Appropriations 158,343 129,818

Net Position $ 2,183 $ (31,814)

Peace Corps

Statements of Changes in Net Position

For The Years Ended September 30, 2014 and 2013

(In Thousands)

The accompanying notes are an integral part of these statements
102 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

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2014 2013

Budgetary Resources:

Unobligated Balance Brought Forward, Oct 1 $ 72,018 $ 71,109

Recoveries of Prior Year Unpaid Obligations 11,616 10,237

Other Changes in Unobligated Balance (62) (1,391)

Unobligated Balance from Prior Year Budget Authority, Net 83,572 79,955

Appropriations (Discretionary and Mandatory) 379,006 360,578

Spending Authority from Offsetting Collections (Discretionary and Mandatory) 16,967 7,268

Total Budgetary Resources $ 479,545 $ 447,801

Status of Budgetary Resources:

Obligations Incurred (Note 13) $ 388,184 $ 375,783

Unobligated Balance, End of Year:

 Apportioned 79,458 60,180

 Exempt from Apportionment 2,102 4,488

 Unapportioned 9,801 7,350

Total Unobligated Balance, End of Year 91,361 72,018

Total Budgetary Resources $ 479,545 $ 447,801

Change in Obligated Balance

Unpaid Obligations:

Unpaid Obligations, Brought Forward, Oct 1 $ 97,280 $ 92,209

Obligations Incurred 388,184 375,783

Outlays (Gross) (367,256) (360,475)

Recoveries of Prior Year Unpaid Obligations (11,616) (10,237)

Unpaid Obligations, End of Year 106,592 97,280

Uncollected Payments: 

Uncollected Pymts, Fed Sources, brought forward, Oct 1 (4,011) (10,371)

Change in Uncollected Pymts, Fed Sources (2,798) 6,360

Uncollected Pymts, Fed Sources, End of Year (6,809) (4,011)

Memorandum (non-add) entries:

Obligated Balance, Start of year $ 93,269 $ 81,838

Obligated Balance, End of year $ 99,783 $ 93,269

Budget Authority and Outlays, Net

Budget Authority, Gross (Discretionary and Mandatory) $ 395,973 $ 367,846

Actual Offsetting Collections (Discretionary and Mandatory) (14,169) (12,912)

Change in Uncollected Pymts, Fed Sources (Discretionary and Mandatory) (2,798) 6,360

Budget Authority, Net $ 379,006 $ 361,294

Outlays, Gross (Discretionary and Mandatory) $ 367,256 $ 360,475

Actual Offsetting Collections (Discretionary and Mandatory) (14,169) (12,912)

Outlays, Net (Discretionary and Mandatory) 353,087 347,563

Distributed Offsetting Receipts (1,193) (1,770)

Agency Outlays, Net (Discretionary and Mandatory) $ 351,894 $ 345,793

Peace Corps

Statements of Budgetary Resources

For The Years Ended September 30, 2014 and 2013

(In Thousands)

The accompanying notes are an integral part of these statements
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 103

Financial Section

Notes to the Financial Statements

a) Reporting Entity

The Peace Corps was initially established by President John F. Kennedy pursuant to Executive Order 10924 on

March 1, 1961, and was subsequently formalized by the Peace Corps Act of 1961. The Peace Corps is an 

independent agency within the executive branch of the United States government. 

The core mission of the Peace Corps is to promote world peace and friendship by making available to interested, 

less developed countries men and women of the United States qualified for service abroad and willing to serve, 

even under conditions of hardship if necessary. The Peace Corps’ goals are to help the people of interested 

countries in meeting their need for trained men and women; to help promote a better understanding of Americans 

on the part of the peoples served; and to help promote a better understanding of other peoples on the part of 

Americans. 

b) Basis of Presentation

The financial statements present the financial position, the net cost of operations, and changes in net position, 

along with budgetary resources activities of the agency pursuant to the requirements of 31 U.S.C. 3515(b). They 

have been prepared using Peace Corps’ books and records in accordance with agency accounting policies, the most 

significant of which are summarized in this note. The statements are in addition to the financial reports used to 

monitor and control budgetary resources, which are prepared from the same books and records. The statements are 

presented in accordance with the applicable form and content requirements of OMB Circular A-136, Financial

Reporting Requirements, issued September 18, 2014. The statements should be read with the realization that they 

are for a component of the U.S. government, a sovereign entity. 

The financial activities of the agency are categorized between entity and non-entity assets and reported and nonreported balances. Entity assets are those assets which the agency has authority to use in it operations, while nonentity assets are assets that are currently held by the Peace Corps but are not available for use by the agency. 

Although both entity and non-entity assets are in the custody and management of the agency, they are reported but 

segregated for presentation purposes.

The Peace Corps’ accounting policies follow Federal Accounting Standards Advisory Board standards and other 

generally accepted accounting principles for the United States federal government. 

The financial statements represent intragovernmental and public activities. The intragovernmental balances, 

revenues, and costs reflect financial transactions between the Peace Corps and other federal agencies. Public 

activities are those with non-governmental customers, including Volunteers, contributors, employees, contractors, 

and vendors. 

c) Basis of Accounting 

Accounting principles encompass both accrual and budgetary transactions. Under the accrual method, revenues are

recognized when earned and expenses are recognized when a liability is incurred, without regard to receipt or 

Note 1 Significant Accounting Policies

Statement Federal Objective

Balance Sheet

Statement of 

Net Cost

Statement of 

Changes in 

Net Position

Statement of 

Budgetary 

Resources

Federal Financial Statements

Reflects the agency's financial position as of the statement date. The assets are the amount of current and 

future economic benefits owned or managed by the agency. The liabilities are amounts owed by the agency. 

The net position is the difference between the assets and liabilities

Shows separately the components of the net cost of the agency's operations for the period. Net cost is 

equal to the gross cost incurred by the agency, less any exchange revenue from its activities.

Explains how the net cost of the agency's operations was funded, and reports other changes in the equity 

that are not included in the Statement of Net Cost. It reflects the changes in both the proprietary and the 

budgetary activities through the respective components: Cumulative Results of Operations and 

Unexpended Appropriations.

Provides information about how the budgetary resources were made available as well as their status at the 

end of the period. It is the only financial statement exclusively derived from the agency's budgetary general 

ledger in accordance with budgetary accounting rules.
104 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

payment of cash. Under the budgetary basis, however, fund availability is recorded based upon legal 

considerations and constraints. The agency receives financing sources through direct appropriations from the 

general fund of the U.S. Treasury and offsetting collections to support its operations. “Appropriations Used”

recognizes that appropriation authority has been applied against received goods and services.

d) Fund Accounting Structure

The agency’s financial activities are accounted for by the U.S. Treasury Appropriation Fund Symbols. They 

include accounts for appropriated funds and other fund groups described below for which the Peace Corps 

maintains financial records.

General Funds - These funds consist of the receipts and expenditures by the Peace Corpsthat are not earmarked by 

law for a specific purpose and used to fund agency operations and capital expenditures.

Special or Trust Funds - These funds consist of receipts and expenditures by the Peace Corps for carrying out 

specific purposes and programs in accordance with terms of the statute that designates the fund as a special fund or 

trust fund. 

Deposit Funds - These funds consist of monies held temporarily by the Peace Corps as an agent for others. These 

include allowance and allotment accounts for employees and Volunteers. The balances in these funds are nonentity assets and are only reported on the face of the Balance Sheet.

General Fund Receipt Accounts - These funds consist of monies collected by the Peace Corps that are returned to 

the U.S. Treasury and not available for Peace Corps’ use. The balances in these funds are excluded from the 

financial statements. 

e) Budget Authority

Congress annually passes multi-year appropriations that provide the agency with authority to obligate funds over a 

two-year period for necessary expenses to carry out operations. After the right to create new obligations has 

expired, this two-year budget authority is available for five additional years for adjusting obligations and for 

completing the liquidation of open obligations, advances, and receivables. After the five-year period, all open 

transactions for the respective fiscal year will be cancelled and funds will be returned to the U.S. Treasury. Any 

valid claims associated with these funds after closure must be processed against current year appropriations. 

In addition, Congress enacts no-year appropriations that are available until expended. All appropriations are 

subject to OMB apportionment as well as Congressional restrictions. The agency places internal restrictions to 

ensure the efficient and proper use of all funds.

Peace Corps has discretionary and mandatory spending of its budget authority. The general funds, which are 

funded by multi-year appropriations from Congress are discretionary. The special and trust funds, which were

authorized by permanent laws are considered mandatory spending for donations received from the private entities 

and to account for retirement and severance of Host Country Resident Personal Services Contractors and Foreign 

Service Nationals.

f) Revenues and Other Financing Sources

Peace Corps’ operations are financed through appropriations, proceeds from the sale of property, and inter-agency 

agreements. For financial statement purposes, appropriations are recorded as a financing source and reported on 

the Statement of Changes in Net Position at the time they are recognized as expenditures. 

g) Fund Balance with the Treasury

Fund Balance with the U. S. Treasury consists of general, special, and trust funds that are available to pay current 

liabilities and finance authorized purchase commitments, and special funds that periodically are direct-financing 

reimbursements to the appropriated funds. 

The agency does not maintain agency cash in commercial bank accounts. All cash receipts and disbursements are 

processed by the U.S. Treasury or the Department of State (DOS).

The funds that make up post cashiers’ imprest funds belong to the U.S. Treasury through DOS’s accountability. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 105

Financial Section

These funds are routinely used to pay for small-value purchases of goods and services and are also used to make 

an occasional emergency payment. Per agreement with DOS, the Peace Corps is responsible for paying for any 

losses incurred by the cashiers that would normally fall on the account holder. All international payments made by 

DOS on behalf of the Peace Corps are charged to the Peace Corps and reduce the applicable Peace Corps’

appropriation unexpended balance in U.S. Treasury records. As of September 30, 2014, cashier imprest funds 

represented by cash on hand, checks on hand, interim advances, and cashier checking account balances totaled 

approximately $1,003,871 in U. S. dollar equivalents.

Fund balance with Treasury is carried forward until such time as goods or services are received and payment is 

made, or until the funds are returned to the U.S. Treasury.

h) Foreign Currency 

Accounting records for the agency are maintained in U.S. dollars, while a significant amount of the overseas 

expenditures are in foreign currencies. For accounting purposes, overseas obligations and disbursements are 

recorded in U.S. dollar equivalents, based on the budgeted rate of exchange as of the date of the transaction. 

Foreign currency payments are made by the U.S. disbursing officers located at the Global Financial Services 

centers in Charleston, South Carolina, and Bangkok, Thailand. 

i) Accounts Receivable

Accounts receivable includes amounts due from other federal entities and from current and former employees and 

Volunteers. Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established 

for material amounts of nonfederal (public) debt exceeding $30,000. The agency recognizes an Allowance for 

Doubtful Accounts when it is determined that the amounts are not likely to be collected. Accounts with approved 

payment plans in place and for which the debtor is meeting the terms of the plan are exceptions to this write-off 

policy. 

j) Advances and Prepayments

Payments in advance of the receipt of goods and services are recorded as advances and recognized as expenses 

when the related goods and services are received. Advances are made principally to agency employees for official 

travel and prepayments to Volunteers for living allowances. 

Pursuant to Section 5(b) of the Peace Corps Act, Peace Corps Volunteers are entitled to a living allowance in order 

that they may serve effectively and safely overseas. Living allowances are paid to Volunteers to provide support 

while in their country of assignment. Allowances are based on local living standards and costs, including food, 

clothing, household items, rent, utilities, and local transportation. 

k) Property, Plant, and Equipment (PP&E)

The agency capitalizes property, plant, and equipment that has an individual acquisition cost of $25,000 or greater, 

a useful life of two years or more, is not intended for sale in the ordinary course of business, and is intended to be 

used or available for use by the entity. Aggregate purchases of General Property, Plant, and Equipment in the 

amount of $500,000 or greater are capitalized. Costs incurred for major building rehabilitations of $25,000 or 

greater are initially recorded as Construction in Progress then after project completion are transferred to Leasehold 

Improvement and amortized over the remaining life of the lease. Software purchased for $25,000 or developed for 

internal use at a cost of $25,000 or greater is capitalized and amortized over its expected life (currently three to 

nine years). IT hardware is capitalized and amortized over its expected life of three to fifteen years. Vehicles in the 

amount of $10,000 and over are capitalized over their useful life of five years for assets acquired FY 2013 and 

prior and six years for purchases made on or after FY 2014. The agency uses an estimated salvage value of 40 

percent for vehicles. Land and anything attached to it, such as buildings, located overseas are capitalized at their 

fair market value at the time of transfer, regardless of their acquisition cost. Buildings are depreciated with a ten 

year asset life. Acquisitions that do not meet these criteria are recorded as operating expenses. Assets are

capitalized at historical cost and depreciated using the straight-line method. 

l) Accounts Payable and Other Liabilities

Liabilities represent the amount of monies or other resources that are likely to be paid as the result of a transaction 
106 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

or event that has already occurred. Liabilities classified as not covered by budgetary resources are liabilities for 

which appropriations have not been enacted.

m) Employee Benefits

I. Federal Employees’ Compensation Act (FECA) Accrued Claims - FECA provides income and medical cost 

protection to covered federal civilian employees injured on the job, to employees who have incurred work-related 

occupational diseases, and to beneficiaries of employees whose deaths are attributable to job-related injuries or 

occupational diseases through the Department of Labor (DOL). The FECA liability consists of two components. 

The first component is based on actual claims paid by DOL but not yet reimbursed by the Peace Corps. The Peace 

Corps reimburses DOL as funds are appropriated for this purpose, generally resulting in a two-year lag in 

payment. This is the liability for the actual claims paid by DOL to be reimbursed by the Peace Corps.

II. Future Workers Compensation Benefits - The second component of FECA is the estimated actuarial liability for 

future benefit payments as a result of past events. This liability includes death, disability, medical, and 

miscellaneous costs. DOL determines this component annually as of September 30, and the Peace Corps 

recognizes an unfunded liability to DOL for estimated future payments. 

III. Accrued Leave - A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

employment terminates. Accrued annual leave is paid from future funding sources and is reflected as a liability 

not covered by budgetary resources. Sick and other leave is expensed as taken.

IV. Employee Health Benefits and Life Insurance - The agency’s employees are eligible to participate in the 

contributory Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance 

Program. The agency contributes to each program to pay for current benefits.

V. Post-Retirement Health Benefits and Life Insurance - Agency employees who may be eligible to participate in the 

Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program could 

continue to do so during retirement. The Office of Personnel Management (OPM) has provided the agency with 

cost factors that estimate the true cost of providing the post-retirement benefit to current employees. The agency 

recognizes a current cost for these and other retirement benefits at the time of employment with the agency. The 

other retirement benefit expense is financed by OPM and offset by the agency through the recognition of an 

imputed financing source on the Statement of Changes in Net Position. 

VI. Employee Retirement Benefits - Peace Corps direct hire employees participate in one of three retirement systems: 

Civil Service Retirement System, Federal Employees Retirement System, or the Foreign Service Retirement and 

Disability System. Foreign Service National (FSN) employees at overseas posts who were hired prior to January 

1, 1984, are covered under the Civil Service Retirement System. FSNs hired after that date, as well as most host 

country residential personal services contractors (PSC), are covered under a variety of local compensation plans in 

compliance with the host country’s local laws and regulations. 

The Peace Corps recognizes its share of the cost of providing future pension benefits to eligible employees 

throughout their period of employment. The pension expense not covered by budgetary resources is calculated 

using actuarial factors provided by OPM and is considered imputed cost to the agency.

VII. Valuation of Host Country Resident Personal Services Contractor Severance and Retirement Liability - The 

Peace Corps is generally liable for separation or retirement payments to eligible PSCs in countries that require 

payments under local labor laws. The estimate of the current and future costs of the severance and retirement 

liability is determined quarterly. 

VIII.Valuation of Foreign Service National Liability - The Peace Corps is generally liable for separation or retirement 

payments to foreign service nationals who are employed by the agency in countries that require payments under 

local labor laws. The estimate of the current and future costs of the severance and retirement liability is 

determined quarterly. 

n) Commitments and Contingencies

The agency is involved in various administrative proceedings, legal actions, and claims arising in the ordinary 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 107

Financial Section

course of business. Contingencies are recognized as a liability when a future outflow or other sacrifice of resources 

is probable and measurable.

o) Funds from Dedicated Collections

Under 22 U.S.C § 2509(a)(4) of the Peace Corps Act, the agency is authorized to accept gifts of voluntary service, 

money, or property, for use in the furtherance of the purposes of its mission. The donated monies received by the 

agency from non-federal sources meet the prescribed criteria of Funds from Dedicated Collections. The amount of 

donations received was $1,836,567 as of September 30, 2014 and $2,564,495 as of September 30, 2013.

p) Use of Estimates

The preparation of financial statements required management to make some estimates and assumptions that affect 

the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial 

statements, and the amount of revenues and costs reported during the period. Actual results could differ from those 

estimates.

q) Interest on Late Payments

Occasionally, the agency incurs interest penalties on late payments. Such interest penalties are paid to the 

respective vendor in accordance with the guidelines mandated by the Prompt Payment Act, P.L. 97–177, as 

amended.

r) Intragovernmental Net Costs 

The Statement of Net Cost is consolidated for the agency using a budget functional classification code. This code 

is used to classify budget resources presented in the budget of the United States government per OMB. The agency 

is categorized under budget functional classification code number 150—International Affairs. Gross cost and 

earned revenues from other intragovernmental agencies (reimbursable agreements) fall under this code. 

s) Adjustments to Maintain Inherent Account Relationship Integrity

The agency performs analytical tie-points to maintain inherent accounts relationships between proprietary and 

budgetary accounts, in compliance with United States Standard General Ledger posting logic. Adjustments are 

made at the appropriation fund code level prior to the submission of the agency’s monthly trial balance via 

Treasury’s Governmentwide Treasury Account Symbol Adjusted Trial Balance System. 

t) Allocation Transfer

The Peace Corps is a party to allocation transfers with the DOS as a receiving (child) entity. Allocation transfers 

are legal delegations by one agency of its authority to obligate budget authority and outlay funds to another 

agency. A separate fund account (allocation account) is created in the U. S. Treasury as a subset of the parent fund 

account (DOS) for tracking and reporting purposes. All allocation transfers of balances are credited to this account, 

and subsequent obligations and outlays incurred by the child entity (Peace Corps) are charged to this allocation 

account as they execute the delegated activity on behalf of the parent entity. All financial activity related to these 

allocation transfers (e.g., budget authority, obligations, and outlays) is reported in the financial statements of the 

parent entity, from which the underlying legislative authority, appropriations, and budget apportionments are 

derived. 

u) Fiduciary Activities

Fiduciary activities consist of Host Country Contributions provided to the Peace Corps by the host country 

government which are accepted under the authority of Section 22 U.S.C. 2509(a)(4) of the Peace Corps Act. 

These contributions provide host country support for the Peace Corps and help defray expenses, enabling the 

agency to use its budget more effectively. The host country retains ownership though the funds are deposited in 

special foreign currency accounts in the U.S. Treasury. Any funds not used are returned to the host country.

Non-entity assets are composed of deposit fund and clearing accounts. These funds are not available for the use of the 

Peace Corps and are not part of the Peace Corps’ resources. The Peace Corps monitors collections, status, and 

Note 2 Non-Entity Assets
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Financial Section

distribution. Below, as information, are the U.S. Treasury fund balances of non-entity assets which are nongovernmental. 

Deposit Fund - The deposit fund is comprised of the Volunteer readjustment allowance earned by Volunteers for each 

month of satisfactory service and payable upon their return to the United States. 

Clearing Accounts - The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, 

and are available once transferred to Peace Corps appropriated funds to be reinvested in a like-kind replacement 

purchase (e.g., proceeds from vehicle sales used to purchase replacement vehicles).

The Fund Balance with Treasury is equal to the unobligated balance of funds plus the obligated balance not yet 

disbursed. 

Available Unobligated Balance - Composed of apportionments available for allotment plus allotments available for 

obligation or commitment.

Unavailable Unobligated Balance - Composed of unapportioned authority plus unobligated appropriation authority 

from prior years that is no longer available for new obligations. This latter authority is only available for adjustments to 

existing obligations.

Non-Budgetary Fund Balance with Treasury - This represents non-entity assets of the agency.

Non-Entity Assets 

Deposit Fund $ 19,806 $ 22,891

Clearing Accounts 419 509

Total Non-Entity Assets 20,225 23,400

Total Entity Assets 234,518 203,890

Total Assets $ 254,743 $ 227,290

September 30, 2014

(In Thousands)

September 30, 2013

(In Thousands)

Fund Balances

Appropriated Funds $ 163,143 $ 136,297

Special Funds 22,460 24,157

Trust Funds 5,541 4,833

Non-Entity Assets (Note 2) 20,225 23,400

Total $ 211,369 $ 188,687

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 81,560 $ 64,668

Unavailable 9,801 7,350

Obligated Balance Not Yet Disbursed 99,783 93,269

Non-Budgetary FBWT 20,225 23,400

Total $ 211,369 $ 188,687

September 30, 2014

Note 3 Fund Balance with Treasury

(In Thousands)

September 30, 2014

(In Thousands)

(In Thousands)

September 30, 2013

September 30, 2013

(In Thousands)
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 109

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Intragovernmental receivables are due from other federal agencies for services provided under reimbursable 

agreements.

Other accounts receivable are due from nonfederal entities, consisting primarily of receivables from employees. 

Based upon the agency’s policy, it was determined that the establishment of an Allowance for Doubtful Accounts 

was not necessary as of September 30, 2014 and September 30, 2013. 

As of September 30, 2014, Peace Corps’ fixed assets include internally developed software and those assets that are 

reflected as active in the property management databases. These assets are located at headquarters in Washington, D.C., 

Note 4 Accounts Receivable, Net

Accounts Receivable as of 

September 30, 2014

(In Thousands)

Intragovernmental $ 2,758 $ - $ 2,758 

Other 334 - 334 

Total $ 3,092 $ - $ 3,092 

Accounts Receivable as of 

September 30, 2013

(In Thousands)

Intragovernmental $ 2,958 $ - $ 2,958 

Other 208 - 208 

Total $ 3,166 $ - $ 3,166 

Accounts

Receivable,

Gross

Accounts

Receivable,

Net

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Gross

Allowance for

Doubtful 

Accounts

Accounts

Receivable,

Net

Components of Fixed Assets as of 

September 30, 2014

(In Thousands)

Useful

Life

in Years

Land $ 43 $ - $ 43 

Buildings 10 463 116 347 

Construction in Progress 417 - 417 

General Property, Plant, and Equipment 5–10 4,735 1,932 2,803 

Vehicles 5-6 23,768 8,962 14,806 

IT Hardware 3–15 19,500 13,444 6,056 

Leasehold Improvements 2–10 6,338 2,869 3,469 

Internal-Use Software in Development 4,564 - 4,564 

Internal-Use Software 3–9 35,361 33,310 2,051 

Total $ 95,189 $ 60,633 $ 34,556 

Components of Fixed Assets as of 

September 30, 2013

(In Thousands)

Useful

Life

in Years

Land $ 43 $ - $ 43 

Buildings 10 463 49 414 

Construction in Progress - - - 

General Property, Plant, and Equipment 5–10 4,640 1,494 3,146 

Vehicles 5 21,180 8,240 12,940 

IT Hardware 3–15 16,304 12,460 3,844 

Leasehold Improvements 2–10 6,162 1,895 4,267 

Internal-Use Software in Development 1,684 - 1,684 

Internal-Use Software 3–9 35,576 31,927 3,649 

Total $ 86,052 $ 56,065 $ 29,987 

Note 5 General Property, Plant, and Equipment, Net

Cost Net Book Value Accumulated 

Depreciation

Cost Accumulated 

Depreciation Net Book Value
110 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

the seven regional offices, and the overseas posts. Values for all assets other than internally developed software were 

obtained from data extracted from the databases. Values for internally developed software were derived from the most 

reliable available data for each system. 

In FY 2014, a donation of land rights with a fair market value of $58,200 was received under the agency’s authority to 

receive gifts and contributions. The property was sold by the agency in the same year. Proceeds from the sale were

restricted, as stipulated by the donor, for a specific purpose. Other than conditional donated properties, there are no 

restrictions on the use or convertibility of General Property, Plant, and Equipment owned by the Peace Corps. 

Prepaid Volunteer Living Allowances - Payments of Volunteer living allowances are made prior to the entitlement 

month so the posts can ensure timely payments of the allowances to the Volunteers. These payments are pre-positioned 

so that Volunteers will not incur a financial burden for their living costs.

Travel Advances to Employees - Travel advances are provided to employees when appropriate. Advances remain in 

the financial records until they are offset against travel entitlements or collected.

Relocation Advances to Employees - Direct-hire employees are provided a relocation advance when appropriate.

Prepaid Rent - Prepaid Rent includes the advance payment for some of the residential and commercial office spaces 

in support overseas operations. 

Unfunded FECA Liability - A liability for the direct dollar costs of compensation and medical benefits paid on the 

agency’s behalf by DOL. Since the agency is dependent on annual appropriation, it will include the amount billed for 

the direct costs in its budget request two years later. 

Unfunded Annual Leave - A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

when the individual terminates. The balance represents the estimated value of annual leave earned but not taken as of

September 30, 2014 for U.S.-hired employees. The valuation of the accrued annual leave for FSN employees and the 

foreign national PSCs has been estimated for this financial statement. There were approximately 133 FSNs and 2,692 

Prepaid Volunteer Living Allowances $ 1,836 $ 2,010

Note 6 Prepaid Volunteer Living Allowances

September 30, 2014

 (In Thousands)

September 30, 2013

 (In Thousands)

Travel Advances to Employees $ 403 $ 451

Relocation Advances to Employees - 27

Prepaid Rent 2,908 2,870

Other Advances 579 92

Total Other Assets $ 3,890 $ 3,440

Note 7 Other Assets

September 30, 2014

 (In Thousands)

September 30, 2013

 (In Thousands)

Intragovernmental Liabilities

Unfunded FECA Liability $ 33,348 $ 32,297

Public Liabilities

Unfunded Annual Leave 10,289 9,755

Unfunded Employment-Related Liability 333 98

Federal Employee and Veterans Benefits 149,107 153,397

Total Liabilities Not Covered by Budgetary Resources $ 193,077 $ 195,547

Total Liabilities Covered by Budgetary Resources $ 59,483 $ 63,557

Total Liabilities $ 252,560 $ 259,104

Note 8 Liabilities Not Covered by Budgetary Resources

 (In Thousands) (In Thousands)

September 30, 2014 September 30, 2013
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 111

Financial Section

foreign national PSCs working for the Peace Corps at the end of the 4th quarter. Annual leave earned is based on 

local labor law requirements. Annual leave is paid out of current appropriations when taken. 

Unfunded Employment Related Liability - A liability for the estimated severance of foreign national PSCs. Lump-sum 

payments are generally made to eligible international long-term personal services contractors based on local labor law 

requirements for separation. These payments are made when the individual terminates and are paid out of current 

appropriations. 

Federal Employee and Veterans Benefits - Liability for the actuarial value of future payments for FECA as estimated 

by DOL for the agency.

Liabilities Covered by Budgetary Resources - Liabilities covered by budgetary resources include accounts payable for 

goods and service received by the agency, liability for the separation and retirement payments for eligible foreign 

service PSCs and FSNs, and other liabilities as shown in Note 9.

Advances from Others - The balance of amounts advanced by other federal entities for goods and services to be 

furnished (e.g., money advance for Small Project Assistance grants.) All advances are considered current liabilities. 

Foreign Service National Liability (FSN) and Host Country Resident Personal Services Contractor (PSC) Severance 

and Retirement Liability - The estimated future liability cost to be paid to eligible FSNs and foreign national PSCs 

upon separation from the agency. FSN and PSC Severance/Retirement Liability are considered non-current liabilities.

For overseas operations, Peace Corps rents residences, office space and training facilities. Leases overseas contain a 

termination clause, allowing the agency to terminate any lease with a 30-90 day notice. Peace Corps leases are all 

operating leases and are considered cancellable. 

The agency enters into Occupancy Agreements with the General Services Administration (GSA) for its building in 

Washington, DC and its regional recruiting offices throughout the continental U.S. GSA leases commercial facilities 

and provides spaces in federal buildings for occupancy by the agency. Occupational Agreements range from five to 

ten year terms, however, leased spaces can be vacated within a 120-day notice to GSA. Future operating lease 

payments for domestic leases are depicted below:

Intragovernmental 

Advances from Others $ 71 $ 224

Other Liabilities

Contingent Liability (Note 11) 202 935

FSN and PSC Severance/Retirement Liability 25,849 24,643

Total Other Liabilities $ 26,122 $ 25,802

Note 9 Other Liabilities

 (In Thousands)

September 30, 2014 September 30, 2013

 (In Thousands)

Note 10 Leases

Fiscal Year 2015 6,629

Fiscal Year 2016 6,591

Fiscal Year 2017 6,196

Fiscal Year 2018 4,028

Fiscal Year 2019 387

After Fiscal Year 2020 753

Total Future Lease Payments $ 24,584

Fiscal Year Future Lease Payments

 (In Thousands)
112 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

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In the opinion of the management and legal counsel, the agency is liable for contingent liabilities related to 

administrative proceedings, legal actions, or claims associated with employee grievances that are probable and 

measurable in the amount of $202,035 as of September 30, 2014 and $935,000 as of September 30, 2013. These 

contingencies are considered current liabilities.

Disclosure is required if there is a reasonable possibility that a loss may be incurred. The likelihood of a reasonable 

possibility of a loss related to administrative proceedings, legal actions, or claims related to employee grievances are

estimated to be $300,000 as of September 30, 2014 and $150,000 as of September 30, 2013. 

Intragovernmental activity represents the costs of goods and services provided to other federal agencies. Costs of 

goods and services and any revenue earned from outside federal sources are classified as public costs.

Exchange revenues represent revenue from services provided. This includes reimbursable agreements from other 

government agencies such as U.S. Agency for International Development sponsored HIV/AIDS education, 

prevention, and mitigation activities; and umbrella programs covering environment, health, youth, micro-enterprise, 

and Small Project Assistance technical assistance.

All obligations incurred are Category A or Exempt from Apportionment. 

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where goods or services have yet to be received. 

Note 11 Commitments and Contingencies

Intragovernmental Costs $ 66,812 $ 63,521

Intragovernmental Earned Revenue (9,853) (9,636)

Total Intragovernmental $ 56,959 $ 53,885

Public Costs $ 297,690 $ 318,352

Public Earned Revenue (187) (395)

Total Public $ 297,503 $ 317,957

Total Net Cost $ 354,462 $ 371,842

Note 12 Intragovernmental Costs and Exchange Revenue

September 30, 2014 September 30, 2013

 (In Thousands) (In Thousands)

Note 13 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable Obligations

Category A $ 372,508 $ 10,310 $ 359,785 $ 10,401

Exempt from Apportionment 5,366 - 5,597 -

Total Obligations Incurred $ 377,874 $ 10,310 $ 365,382 $ 10,401

 Direct Reimbursable Direct

September 30, 2014

(In Thousands)

September 30, 2013

(In Thousands) 

Reimbursable

Undelivered Orders – End of Period $ 73,327 $ 63,753

 (In Thousands) (In Thousands)

Note 14 Undelivered Orders at the End of the Period

September 30, 2014 September 30, 2013
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The differences between the FY 2013 SBR and the FY 2013 actual numbers presented in the FY 2015 Budget of the 

United States Government are summarized in the table above. The President’s Budget with actual numbers for FY 

2013 has been published at http://www.whitehouse.gov/sites/default/files/omb/budget/fy2015/assets/budget.pdf. The 

difference between the agency’s SBR and the Budget of the U.S. Government is attributable to a non-entity trust fund 

not reported in the agency’s SBR. In FY 2014, all trust funds were included in the SBR.

Host Country Contributions are provided to Peace Corps by the host government and are accepted under the authority 

of Section 22 U.S.C. 2509(a)(4) of the Peace Corps Act. These contributions indicate host country support for the 

Peace Corps and help defray expenses, enabling the agency to use its budget more effectively. The host country 

retains ownership though the funds are deposited to special foreign currency accounts in the U.S. Treasury. In the 

event the funds are not used, funds are returned to the host country. The agency received cash and in-kind 

contributions from host countries. In-kind contributions estimated at $2,716,957 in fair market value were received at 

posts through the end of September 30, 2014, for services, supplies, equipment, and facilities. The host country cash 

balance is $716,829 as of September 30, 2014.

(In Millions)

Statement of Budgetary Resources $ 448 $ 376 $ 347 $ (2)

Budget of the U.S. Government 453 379 347 (3)

Difference $ (5) $ (3) $ - $ 1

Note 15 Explanation of Differences between the SBR and the Budget of the US Government

Distributed 

Offsetting 

Receipts and 

Outlays

Budgetary 

Resources 

Obligations 

Incurred Net Outlays

Note 16 Fiduciary Activities

Schedule of Fiduciary Activity

(In Thousands)

Fiduciary Net Assets, Beginning $ 887 $ 804 $ - $ -

 Contributions 658 787 2,717 4,274

 Disbursements (799) (704) (2,717) (4,274)

Increase/(Decrease) in Fiduciary Net Assets (141) 83 - -

Fiduciary Net Assets, Ending $ 746 $ 887 $ - $ -

Schedule of Fiduciary Net Assets

(In Thousands)

Fiduciary Net Assets

Cash and Cash Equivalents $ 746 $ 887 $ - $ -

Total Fiduciary Net Assets $ 746 $ 887 $ - $ -

HCC

Cash

2014 

HCC

Cash

2013 

HCC

In-Kind

2014 

HCC

In-Kind

2013 

HCC

Cash

2014 

HCC

Cash

2013 

HCC

In-Kind

2014 

HCC

In-Kind

2013 
114 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

The Reconciliation of Net Cost of Operations to Budget reflects both the budgetary and non-budgetary sources that 

fund the Net Cost of Operations.

Imputed financing recognizes actual costs of future benefits which include the Federal Employees Health Benefit 

Program, Federal Employees Group Life Insurance Program, and pension benefits that are paid by other federal 

entities. 

Resources Used to Finance Activities:

Budgetary Resources Obligated:

Obligations Incurred $ 388,184 $ 375,783

Less: Spending Authority from Offsetting Collections and Recoveries 28,583 17,505

Obligations Net of Offsetting Collections and Recoveries 359,601 358,278

Less: Offsetting Receipts (1,193) (1,770)

Net Obligations 360,794 360,048

Other Resources

Transfers in/out without reimbursement (+/-) 510 (154)

Imputed financing from costs absorbed by others 6,165 5,644

Net resources used to finance activities 6,675 5,490

Total resources used to finance activities 367,469 365,538

Resources Used to Finance Items Not Part of the Net Cost of Operations:

Change in budgetary resources obligated for goods, services and benefits ordered but 

not yet provided (+/-) (5,626) (14,226)

Resources that fund expenses recognized in prior periods (3,202) 13,866

Budgetary offsetting collections and receipts that do not affect net cost of operations 1,840 5,280 

Resources that finance the acquisition of assets (12,178) (4,424)

Other resources or adjustments to net obligated resources that do not affect net cost of 

operations (+/-) (510) 154

Total resources used to finance items not part of the net cost of operations (19,676) 650

Total resources used to finance the net cost of operations 347,793 366,188

Components Requiring or Generating Resources in Future Periods:

Future Funded Expenses - (4,143)

Employer Contribution to Employee Benefits - 1,773

Components not Requiring or Generating Resources:

Depreciation and amortization 6,722 7,818

Other (+/-) (53) 206

Total Components of Net Cost of Operations that will not require or generate resources 6,669 5,654

Net Cost of Operations $ 354,462 $ 371,842

Note 17 Reconciliation of Net Cost of Operations to Budget 

September 30, 2014

(In Thousands)

September 30, 2013

(In Thousands)

Note 18 Imputed Financing

Federal Employees Health Benefit Program $ 4,038 $ 3,926

Federal Employees Group Life Insurance Program 15 16

Civil Service Retirement System 559 577

Federal Employees Retirement System 1,532 1,091

Foreign Service Retirement and Disability System 21 34

Total Imputed Costs $ 6,165 $ 5,644

September 30, 2014

 (In Thousands)

September 30, 2013

 (In Thousands)
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 115

Financial Section

Inspector General’s Audit Transmittal Letter

Office of Inspector General

To: Carolyn Hessler-Radelet, Director

From: Kathy A. Buller, Inspector General 

Date: November 7, 2014 

Subject: Audit of Peace Corps’ Fiscal Year 2014 Financial Statements

This letter transmits the reports of Kearney & Company, P.C. (Kearney) on its financial

statement audit of the Peace Corps’ Fiscal Year (FY) 2014 Financial Statements. As required 

by the Accountability of Tax Dollars Act of 2002, the Peace Corps prepared financial 

statements in accordance with Office of Management and Budget (OMB) Circular No. A136, Financial Reporting Requirements, and subjected them to audit. 

Auditor’s Reports on the Financial Statements, Internal Control over Financial Reporting, 

and Compliance with Applicable Provisions of Laws, Regulations, Contracts, and Grant 

Agreements

We contracted with Kearney, an independent certified public accounting firm, to audit the

Peace Corps’ financial statements as of September 30, 2014 and 2013. The contract required 

that the audit be done in accordance with U.S. Generally Accepted Government Auditing 

Standards (GAGAS), OMB audit guidance, and the Government Accountability 

Office/President’s Council on Integrity and Efficiency Financial Audit Manual. 

Kearney’s reports for FY 2014 include: (1) an opinion on the financial statements, (2) 

conclusions on internal control over financial reporting, and compliance with applicable 

provisions of laws, regulations, contracts, and grant agreements. In its audit of the Peace 

Corps, Kearney found:

 The financial statements were fairly presented, in all material respects, in conformity with

GAGAS principles. 
116 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

 There were no material weaknesses in internal control.1

 Three significant deficiencies related to internal control were disclosed by the auditor:2

 Internal control over property, plant, and equipment needs to be improved. 

Improvements needed are related to recording and tracking of property. 

 Information technology security needs improvement. The auditor cited 

continuous monitoring, risk management and security program controls, as 

areas needing improvement. 

 De-obligation of unliquidated obligations (ULO) is not timely. Specifically, 

the auditor cited that an effective ULO control environment is not being 

maintained and needs to be strengthened. 

 

 Four instances of reportable noncompliance were found relating to complying with

applicable provisions of laws, regulations, contracts, and grant agreements which are 

required to be reported under GAGAS or OMB guidance. Kearney found that the Peace 

Corps did not comply with: 

 

 OMB Circular A-11 relating to complete and accurate reporting of federal 

agency consolidated financial statements. 

 OMB Circular A-11 regarding accurate and timely recording of obligations.

 Ethics in Government Act of 1978 associated with the timely reporting and 

reviewing of annual Public Financial Disclosure Reports.

 Federal Information Security Management Act of 2002.

 

OIG Evaluation of Kearney’s Audit Performance

In connection with the contract, we reviewed Kearney’s reports and related documentation 

and inquired of its representatives. Our review, as differentiated from an audit in accordance 

with GAGAS, was not intended to enable us to express, and we do not express, opinions on 

the Peace Corps’ financial statements or conclusions about the effectiveness of internal 

control or compliance with applicable provisions of laws, regulations, contracts, and grant 

agreements. Kearney is responsible for the attached auditor’s reports dated November 7, 

2014 and the conclusions expressed in the reports. However, our review disclosed no 

instances where Kearney did not comply in all material respects with GAGAS. 

 

1 A material weakness is defined as a deficiency, or combination of deficiencies, in internal control, such that 

there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be 

prevented, or detected and corrected on a timely basis.

2 A significant deficiency is defined as a deficiency, or a combination of deficiencies, in internal control that is 

less severe than a material weakness, yet important enough to merit attention by those charged with governance.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 117

Financial Section

We would like to express our gratitude to the Peace Corps staff involved in working with the 

auditors and issuing the financial statements within the established OMB milestones. Their 

professionalism, cooperation, and timely responsiveness, allowed us to overcome the many 

challenges associated with performance of the audit and our oversight of the audit process. If 

you or a member of the Peace Corps staff has any questions about Kearney’s audit or our 

oversight please contact me or Assistant Inspector General for Audit Judy Leonhardt, at 202-

692-2914. 

Attachment

cc: Laura Chambers, Chief of Staff

 Kathy Rulon, Senior Advisor to the Director 

Joseph L. Hepp, Jr., Chief Financial Officer 

Dorine Andrews, Chief Information Officer 

Daljit Bains, Chief Compliance Officer
118 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

Auditor’s Report

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT

To the Director and Inspector General of the United States Peace Corps

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of the United States Peace 

Corps (Peace Corps), which comprise the consolidated balance sheets as of September 30, 2014

and 2013, the related consolidated statements of net cost and changes in net position, and the 

combined statements of budgetary resources (hereinafter referred to as the “consolidated 

financial statements”) for the years then ended, and the related notes to the consolidated financial 

statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated

financial statements in accordance with accounting principles generally accepted in the United 

States of America; this includes the design, implementation, and maintenance of internal control 

relevant to the preparation and fair presentation of consolidated financial statements that are free 

from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on 

our audits. We conducted our audits in accordance with auditing standards generally accepted in 

the United States of America; the standards applicable to financial audits contained in 

Government Auditing Standards, issued by the Comptroller General of the United States; and 

Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal 

Financial Statements. Those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the consolidated financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the consolidated financial statements. The procedures selected depend on the 

auditor’s judgment, including the assessment of the risks of material misstatement of the 

consolidated financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant to the entity’s preparation and fair 

presentation of the consolidated financial statements in order to design audit procedures that are 

appropriate in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit 

also includes evaluating the appropriateness of accounting policies used and the reasonableness 

of significant accounting estimates made by management, as well as evaluating the overall

presentation of the consolidated financial statements.
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 119

Financial Section

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all 

material respects, the financial position of the Peace Corps as of September 30, 2014 and 2013,

and its net cost of operations, changes in net position, and budgetary resources for the years then 

ended, in accordance with accounting principles generally accepted in the United States of 

America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the 

Management’s Discussion and Analysis (hereinafter referred to as the “required supplementary 

information”) be presented to supplement the consolidated financial statements. Such 

information, although not a part of the consolidated financial statements, is required by OMB 

and the Federal Accounting Standards Advisory Board (FASAB), who consider it to be an 

essential part of financial reporting for placing the consolidated financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the required supplementary information in accordance with auditing standards 

generally accepted in the United States of America, which consisted of inquiries of management 

about the methods of preparing the information and comparing it for consistency with 

management’s responses to our inquiries, the consolidated financial statements, and other 

knowledge we obtained during our audits of the consolidated financial statements. We do not 

express an opinion or provide any assurance on the information because the limited procedures 

do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on the consolidated financial 

statements taken as a whole. Other Information is presented for purposes of additional analysis 

and is not a required part of the consolidated financial statements. Such information has not

been subjected to the auditing procedures applied in the audits of the consolidated financial 

statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards and OMB Bulletin No. 14-02, we have also 

issued reports, dated November 7, 2014, on our consideration of the Peace Corps’ internal 

control over financial reporting, our tests of the Peace Corps’ compliance with certain provisions 

of laws, regulations, contracts, and grant agreements, and other matters for the year ended 

September 30, 2014. The purpose of those reports is to describe the scope of our testing of 
120 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

internal control over financial reporting and compliance and the results of that testing, and not to 

provide an opinion on internal control over financial reporting or on compliance and other 

matters. Those reports are an integral part of an audit performed in accordance with Government 

Auditing Standards and OMB Bulletin No. 14-02, and should be considered in assessing the 

results of our audits.

Alexandria, Virginia

November 6, 2014
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 121

Financial Section

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER 

FINANCIAL REPORTING AND COMPLIANCE WITH APPLICABLE PROVISIONS 

OF LAWS, REGULATIONS, CONTRACTS, AND GRANT AGREEMENTS

To the Director and Inspector General of the United States Peace Corps

We have audited the accompanying consolidated financial statements of the United States Peace 

Corps (Peace Corps), which comprise the consolidated balance sheets as of and for the year 

ended September 30, 2014, the related consolidated statements of net cost and changes in net 

position, and the combined statements of budgetary resources (hereinafter referred to as the 

“consolidated financial statements”) for the year then ended, and have issued our report thereon,

dated November 7, 2014. We conducted our audits in accordance with auditing standards 

generally accepted in the United States of America; the standards applicable to financial audits 

contained in Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements 

for Federal Financial Statements.

Internal Control Over Financial Reporting

In planning and performing our audits of the consolidated financial statements, we considered 

the Peace Corps’ internal control over financial reporting (internal control) to determine the audit 

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on 

the consolidated financial statements, but not for the purpose of expressing an opinion on the 

effectiveness of the Peace Corps’ internal control. Accordingly, we do not express an opinion on 

the effectiveness of the Peace Corps’ internal control. We limited our internal control testing to 

those controls necessary to achieve the objectives described in OMB Bulletin No. 14-02. We did 

not test all internal controls relevant to operating objectives as broadly defined by the Federal 

Managers’ Financial Integrity Act of 1982 (FMFIA), such as those controls relevant to ensuring 

efficient operations. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s consolidated financial statements will not 

be prevented or detected and corrected on a timely basis. A significant deficiency is a 

deficiency, or combination of deficiencies, in internal control that is less severe than a material 

weakness yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding 

paragraph and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies; therefore, material weaknesses or significant 
122 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Financial Section

deficiencies may exist that were not identified. Given these limitations, during our audits, we did 

not identify any deficiencies in internal control that we consider to be material weaknesses. 

However, material weaknesses may exist that have not been identified. We did identify certain 

deficiencies in internal control, described in the accompanying Schedule of Findings, which we 

consider to be significant deficiencies.

We noted certain additional matters involving internal control over financial reporting that we 

will report to the Peace Corps’ management in a separate letter.

Compliance with Applicable Provisions of Laws, Regulations, Contracts, and Grant 

Agreements

As part of obtaining reasonable assurance about whether the Peace Corps’ consolidated financial 

statements are free from material misstatement, we performed tests of its compliance with certain 

provisions of laws, regulations, contracts, and grant agreements, noncompliance which could 

have a direct and material effect on the determination of financial statement amounts, and certain 

provisions of other laws and regulations specified in OMB Bulletin No. 14-02. We limited our 

tests of compliance to these provisions and did not test compliance with all laws, regulations, 

contracts, and grant agreements applicable to the Peace Corps. However, providing an opinion 

on compliance with those provisions was not an objective of our audits, and accordingly, we do 

not express such an opinion. The results of our tests disclosed instances of noncompliance or 

other matters that are required to be reported under Government Auditing Standards and are 

described in the accompanying Schedule of Findings.

The Peace Corps’ Response to Findings

The Peace Corps’ management has provided its response to the findings identified in our audits

in a separate memorandum attached to this report. The Peace Corps’ response was not subjected 

to the auditing procedures applied in our audit of the consolidated financial statements and 

accordingly, we do not express an opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and 

compliance and the results of that testing, and not to provide an opinion on the effectiveness of 

the entity’s internal control or on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards and OMB Bulletin No. 14-02 in 

considering the entity’s internal control and compliance. Accordingly, this communication is not 

suitable for any other purpose.

Alexandria, Virginia

November 6, 2014
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 123

Financial Section

Schedule of Findings

* * * * *

Significant Deficiencies

I. Property, Plant, and Equipment (Repeat Condition)

Agency management is responsible for the design and operation of Property, Plant, and 

Equipment (PP&E) internal control framework. This control framework should include policies, 

procedures, reviews, and approvals to ensure that long-lived assets are properly identified and all 

acquisition costs are accurately captured. Agencies should also ensure that property purchases 

and dispositions are recorded accurately, supported by appropriate documentation, and recorded 

timely to ensure the completeness and accuracy of property balances on the Balance Sheet.

Absence of a comprehensive internal control framework may result in erroneous consolidated 

financial statements, theft, lack of accountability, waste, fraud, abuse, and lack of responsiveness 

to changing risk and threats. 

The Peace Corps’ property includes land and structures permanently attached to land, as well as 

leasehold improvements, vehicles, information technology (IT) hardware, and other tangible 

items. Additionally, the Peace Corps accumulates project costs in Construction in Progress 

(CIP) until the asset is placed into service.

The Peace Corps uses several non-integrated systems, such as the Fixed Assets Module, Vehicle 

Management Information System (VMIS), and BarTracks to track, manage, and record personal 

property transactions in the financial records. During Kearney’s audit procedures, we noted the 

following issues related to PP&E:

• Kearney identified PP&E internal control gaps in the areas of Reconciliation of Asset 

Listings and the overall controls that are in place to ensure that the PP&E included in the 

consolidated financial statements is accurate and free from material misstatements. The 

points listed below illustrate the control gaps and processes noted:

- Reconciliation of Asset Listings – The Peace Corps maintains three separate

property tracking applications, a detailed vehicle tracking system (VMIS), a “master” 

vehicle tracking spreadsheet, and a personal property inventory maintained in 

BarTracks. None of these tracking applications are automatically interfaced with the 

financial information system asset management system (Odyssey Fixed Assets 

Module). The Peace Corps has not established controls activities to ensure 

information in all applications is complete and accurate. For example:

o The Peace Corps has no assigned responsibility to perform reconciliations 

between VMIS and the financial systems to ensure the existence, completeness, 

and valuation of vehicles included in the consolidated financial statements

o The Peace Corps has not developed an effective reconciliation process to identify 

differences between the personal property tracked in BarTracks and the Odyssey 

Fixed Assets Module subsidiary ledger in a timely manner
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- Asset Impairment and Obsolescence Procedures – The Peace Corps currently does

not have standardized procedures regarding the identification and subsequent 

accounting treatment of obsolete and impaired assets. This may lead to inconsistent 

treatment among Posts, and potentially erroneous consolidated financial statements.

The Peace Corps cannot ensure complete and accurate financial information regarding PP&E. 

The control deficiencies result in:

• Loss of asset accountability, which introduces operational risk related to the ability to 

execute the Peace Corps’ mission

• Decrease in the uniformity and standardization of procedures, resulting in inconsistent 

treatment of assets and an increase in the difficulty of completing consolidated reports

• Increase in the likelihood of financial reporting misstatements due to delayed recognition

of asset impairments.

Recommendation Number 1: Kearney recommends that the Peace Corps enhance its overall 

control environment in relation to PP&E by performing the following:

1. Develop and implement reconciliation procedures between the various inventory 

management tools used by the process owners and the Odyssey Fixed Assets Module 

subsidiary ledger to ensure accuracy and completeness

2. As appropriate, develop standardized procedures to identify and account for damaged, 

obsolete, or otherwise impaired PP&E.

Kearney analyzed property balances, acquisitions, and disposal transactions recorded by the

Peace Corps through June 30, 2014. Kearney conducted testing across all Peace Corps asset 

types as of June 30, 2014 and during four Post visits conducted during fieldwork. Kearney 

identified the following: 

• Kearney evaluated a statistically selected sample of 50 asset additions with a recorded 

value of $556,572 as of June 30, 2014 from a $4,089,739 population. Kearney identified 

10 exceptions, with a total known error of $12,986 and a statistically projected error of 

$63,222, in which the Peace Corps did not capture all capitalizable costs related to 

vehicle acquisitions, including clearing agents and freight costs

• Kearney selected a judgmental sample of 10 recorded asset disposals. Kearney identified 

a $13,240 fixed asset addition which should have been capitalized. The Peace Corps 

erroneously reversed the addition, understating assets and overstating operating expenses 

by $13,240

• During Post visits, Kearney noted the following exceptions:

- The Peace Corps did not include acquisition costs of $19,160 for 31 vehicles with 

initial costs of $1,063,056 and a net book value of $780,006 in the capitalized amount 

in the Fixed Asset Listing, which was an average error rate of two percent

- The Peace Corps did not remove four disposed assets from the Fixed Assets Listing. 

The total net book value of the assets as of June 30, 2014 was $39,915 and the 

unrecorded gain was $111,467
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- The capitalized amounts for six vehicles in the Fixed Asset Listing do not agree with 

invoices. Kearney noted a difference of $(11,349) between the amount on the invoice 

and the amount in the Fixed Asset Listing.

The untimely and inaccurate processing of property transactions may result in misstatements in 

the Peace Corps’ consolidated financial statements, as well as incomplete or inaccurate property 

data used in making management and budgeting decisions. Additionally, the errors in the 

property records may result in a lack of accountability for asset custodianship, which could lead 

to theft or waste.

Recommendation Number 2: Kearney recommends that the Peace Corps enhance its overall 

control environment in relation to PP&E by performing the following:

1. Institute procedures to ensure that all capitalizable costs related to vehicle acquisitions, 

including clearing agents and freight costs, are included in the capitalized asset cost 

2. Institute standard operating procedures that emphasize the importance of accurately 

determining and timely recording asset acquisitions and disposals

3. Expand domestic reviews and validation of property information.

II. Information Technology Security (Repeat Condition)

The Peace Corps’ IT internal control structure, both for the General Support Systems and critical 

financial reporting applications, did not include a comprehensive risk analysis, evidence of 

effective monitoring of design and performance, and evidence of an ability to identify and 

respond to changing risk profiles. The Peace Corps’ IT control environment included design and 

operation weaknesses that, when combined, are considered to be a significant deficiency, as 

summarized below:

• During Fiscal Year (FY) 2014, the Office of the Chief Information Officer (OCIO) had 

begun the process of implementing a continuous monitoring program. However, it was

not able to complete the implementation with visibility of all Federal Information 

Security Management Act of 2002 (FISMA) systems in accordance with its Information 

Security Continuous Monitoring (ISCM) strategy. The FISMA Evaluation Team

identified the following control deficiencies:

- Five of seven FISMA reportable information systems were not captured by the 

OCIO’s official tool, Cyber Security Assessment and Management, for Ongoing 

Assessment and Authorization (OAA), tracking, and closing Plan of Action and 

Milestones records

- The Peace Corps did not follow the OAA process to identify and assess selected 

security controls (including system-specific, hybrid, and common controls) for the 

Odyssey and Global Operations (GlobalOps) systems 

- The Peace Corps has not implemented a capability to detect unauthorized connections 

to its networks.

• The Peace Corps does not have a robust agency-wide risk management program to 

manage information security risks. OCIO has formalized an overall Risk Management 
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Strategy as of February 2014; however, no evidence demonstrated that the agency was 

able to identify, assess, respond to, and monitor information security risks at the entity or 

business process levels. In addition, the Peace Corps has not developed relevant security 

policies and procedures to effectively manage the FISMA system inventory, establish 

system boundaries, and conduct appropriate Security Testing and Evaluation as part of 

the Security Assessment and Authorization (SA&A) process. Further, the FISMA 

Evaluation Team determined that the Peace Corps did not effectively manage its FISMA 

system inventory and identified that two major applications, Odyssey and GlobalOps,

were missing up-to-date authorization packages.

As defined in Generally Accepted Government Auditing Standards , information system controls 

consist of those internal controls that are dependent on information systems processing and 

include general controls and application controls. General controls and application controls are 

not likely to be effective due to weaknesses in the Peace Corps’ Information Security Program.

Security program policies and procedures apply to all, or a large segment of, the Peace Corps’ 

information systems. The effectiveness of these procedures is a significant factor in determining 

the effectiveness of controls at the application level. 

Application-level controls are not likely to be effective due to weaknesses in information 

security program controls. Weaknesses in security management can result in increased risk that 

application-level controls are not consistently applied, which could render accounting process 

controls ineffective by circumvention or modification. 

Recommendation Number 3: Kearney recommends that the Peace Corps:

1. Develops and adheres to a formal project plan to assign the proper resources required to 

fully implement all components of its current ISCM strategy

2. In coordination with the Risk Executive, develops and implements a holistic risk 

management strategy that identifies, assesses, and remediates security-related risks at the 

entity, business process, and information system levels that is consistent with FISMA 

requirements and National Institute of Standards and Technology Special Publication 

800-39

3. Performs a SA&A on all FISMA reportable systems in accordance with their risk 

management strategy. 

III. Untimely De-Obligation of Unliquidated Obligations (New Condition) 

Unliquidated Obligations (ULO) represent binding agreements for goods and services that have 

not yet been delivered or received, and will require future outlays. Agencies should maintain 

policies, procedures, and information systems to ensure that ULOs represent current required 

Federal outlays. Failure to maintain an effective ULO control environment may result in 

difficulties in managing funds, improper payments, inaccurate budgetary reports, and violations 

of Federal regulations.
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The Peace Corps records obligations in its financial management system when it enters into an 

agreement, such as a contract or purchase order, to purchase goods or services. Once recorded, 

obligations remain open until they are fully reduced by disbursements or de-obligated, or the 

appropriation funding the obligations is canceled. As invoices are received and payments are 

made, obligations are liquidated by the amount of the payments. ULOs represent orders for 

which the goods and services have been received but payments have not yet been made.

• The Peace Corps reported 25,641 ULOs worth $76 million as of June 30, 2014. Kearney 

evaluated the validity and liquidation status of 32 non-Federal ULOs greater than $5,000 

with no liquidation activity within the last nine months with a statistical sample, and

judgmentally sampled the five largest Federal ULOs. The combined 37 ULOs sampled 

had a recorded value of $1 million. Kearney determined the following:

- 15 of the 32 statistically sampled non-Federal ULOs valued at $373,254 should have 

been de-obligated. These errors resulted in a statistically projected error of $446,169

- Four out of five judgmentally sampled Federal ULOs valued at $136,515 should have 

been de-obligated as of June 30, 2014. These errors comprised 70% of the recorded

Federal ULO balance. 

In total, Kearney identified 19 exceptions with a recorded value of $509,769 that no longer 

represented future Peace Corps funding needs.

In addition, Kearney tested 40 additional open obligations during Post visits and identified two 

open obligations that should have been de-obligated. These two obligations that were not deobligated had a value of $12,400.

The 19 identified exceptions produced a projected likely error of approximately $446,000 in the 

non-Federal ULO balance as of June 30, 2014. The Peace Corps’ failure to maintain an effective 

ULO control environment in which invalid open obligations are identified and de-obligated in a 

timely manner may result in difficulties in managing funds, improper payments, inaccurate 

budgetary reports, and possible violations of Federal regulations.

Recommendation Number 4: Kearney recommends that the Peace Corps take steps to strengthen 

and better integrate the obligation process, including the following:

1. Review open obligations, and ensure the ultimate disposition of open obligations is 

formally documented, reviewed, and certified by a senior official(s) in a timely and 

routine manner

2. Provide annual training on related policies and procedures to ensure consistency among 

Posts.

* * * * *
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Noncompliance and Other Matters

IV. OMB Circular Number A-11, Preparation, Submission, and Execution of the Budget

(Repeat Condition)

The Bureau of the Fiscal Service, a bureau of the United States Department of the Treasury

(Treasury), maintains the Federal Government’s set of accounts, and assists Federal agencies 

with adopting uniform accounting and reporting standards and systems by issuing Treasury’s 

Federal Account Symbols and Titles (FAST) Book. The FAST Book lists receipt, appropriation, 

and other fund account symbols and titles assigned by Treasury.

OMB Circular A-11, Preparation, Submission, and Execution of the Budget, Appendix F,

“Format of the SF-132, SF-133, Schedule P, and SBR,” defines how the apportionments and 

budgetary resources should be reported. An agency’s failure to follow this guidance can result in 

erroneous and misstated financials, violations of laws and regulations, and improper 

consolidation of Government-wide accounts.

The Peace Corps separated Treasury Account Fund Symbols (TAFS) 11X8245 into the 

following funds:

• Private Sector Non-Entity Funds (X82450000) are restricted donations upon volunteer 

initiative request

• Capitalized Donations (X82457777) account for the two property donations that the

Peace Corps received in Belize and Swaziland

• Private Sector Entity Fund (X82459999) includes money donated to the Peace Corps that 

have general but not specific purposes.

As a result of an inconsistency in the classification of these funds within the Peace Corps’ 

financial system, Odyssey, of the three funds listed above that make up 11X8245, only two of 

the funds are being reported in the consolidated financial statements.
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The Peace Corps’ treatment of the three TAFS is not in accordance with FMS and OMB 

guidance. The June 30, 2014 balances are shown below for the three Odyssey TAFS.

TAFS Title Peace Corps’ Description Odyssey 

TAFS

Amount in 

Fund Balance 

with Treasury 

Reported

in 6/30 

Financial 

Statements 

(Yes/No)

Gifts and 

Contributions, 

Peace Corps

This fund was used to record 

Private Sector cash donations 

that are used to fund the Peace 

Corps’ volunteer projects. 

X82450000 $1,108,745 No

Gifts and 

Contributions, 

Peace Corps

This fund was used to record 

Private Sector non-cash 

donations. 

X82457777 $0.001 Yes

Gifts and 

Contributions, 

Peace Corps

This fund was used to record 

Private Sector cash donations 

that are used to fund the Peace 

Corps’ operations. 

X82459999 $196,297 Yes

$1,305,042

As of September 31, 2014, the Peace Corps corrected the reporting issue noted above. All three 

funds are being reported in the consolidated financial statements correctly.

V. OMB Circular Number A-11, Preparation, Submission, and Execution of the Budget

(New Condition)

Obligations are definite commitments that create a legal liability of the Government for payment. 

The Peace Corps should record an obligation in its financial management system when it enters 

into an agreement, such as a contract or purchase order, to purchase goods and services. 

Agencies should only record legitimate obligations, which would include a reasonable estimate 

of the Government's potential liability. Agencies should maintain policies, procedures, and 

information systems to ensure that obligations represent required Federal outlays, comply with 

laws and regulations, and are appropriately approved. Failure to maintain effective obligation 

controls may result in difficulties managing funds, improper payments, inaccurate budgetary 

reports, and violation of Federal regulations, including the Antideficiency Act.

Kearney tested 45 new obligations, valued at $9,239,106, created October 1, 2013 through June 

30, 2014, and noted the following issues:

• One obligation overstated the Personal Service Contract value by $2,584

• One obligation understated the Personal Service Contract value by $1,382

 

1 This fund does not have a balance in Standard General Ledger 1010 due to the balance being represented by 

donated land and buildings. Standard General Ledger Accounts 1711 and 1730 reflect the balance of $85,000.
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• Eight obligations were recorded in Odyssey after the period of performance began. This 

delay related to data entry into the financial information system; the actual obligating 

documents were executed prior to the period of performance. The delay between the 

obligation date recorded in Odyssey and the period of performance start date ranged 

between one day and 90 days

• One obligation represented a $425,748 contract that was not executed before the period 

of performance

• During Post visits, Kearney noted that one expense sample was obligated in Odyssey five 

days after the period of performance began.

The identified exceptions produced a statistically projected likely overstatement error of 

approximately $307,000 in the overall balance as of June 30, 2014. In addition, obligations that 

are not recorded timely in the financial information system preclude the effective operation of 

automated controls and may increase the risk that goods or services may be acquired and/or 

received prior to an authorized obligation certifying the availability of funds, or prior to an 

authorized contract or purchase order being established. The process of authorizing the 

obligation and certifying fund availability ensures the completeness of the recorded obligation 

balances.

VI. Ethics in Government Act of 1978 (New Condition)

The Ethics in Government Act of 1978, as amended, requires senior officials in the executive, 

legislative, and judicial branches to file public reports of their finances, as well as other interests 

outside the Government. The primary purpose of this disclosure is to assist agencies in 

identifying potential conflicts of interest between a filer’s official duties and their private 

financial interests and affiliations. The Peace Corps’ Senior Executive Service employees are 

required to annually complete and file Public Financial Disclosure Reports (Office of 

Government Ethics [OGE]-278) to declare their financial assets and affiliations. OGE-278s are 

to be filed within 30 days of appointment or termination, or by May 15 of that calendar year, 

whichever is later. 

The Designated Agency Ethics Official is responsible for reviewing all OGE-278s to determine 

if any actual or potential conflicts of interest exist between the filer’s public responsibilities and 

private interests and activities within 60 days of the filing date. Timely submission of the OGE278 allows the filer and the Peace Corps to address such conflicts when they first appear, and 

take appropriate actions to protect the filer and the Peace Corps.

Kearney evaluated 100% of the Peace Corps’ 17 Public Financial Disclosure Forms (i.e., OGE 

Form 278). Kearney noted the following exceptions:

• Two employees filed their OGE-278 eight and 33 days late, respectively

• The DEAO did not start the review of three OGE-278s within 60 days of receipt of the 

employees OGE-278. The DEAO started these reviews 69, 79, and 97 days late,

respectively.
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Untimely submission and review of an OGE-278 could cause potential conflicts of interest 

between the filer’s official Government duties and private financial interests, and cause 

affiliations to go undetected and unresolved for extended periods of time. The Peace Corps may 

be exposed to negative publicity and legal events if perceived and/or actual conflicts of interest 

and violations of Federal ethics laws and regulations are not disclosed and remediated in a timely 

manner.

VII. Federal Information Security Management Act of 2002 (Repeat Condition)

FISMA requires agencies to provide information security controls commensurate with the risk 

and potential harm of not having those controls in place. The heads of agencies and OIGs are 

required to annually report on the effectiveness of the agencies’ security programs.

As noted in its Assurance Statement, the Peace Corps disclosed an instance of noncompliance

with FISMA that is required to be reported under Government Auditing Standards and OMB 

Bulletin No. 14-02.

By not complying with FISMA, the Peace Corps has potentially weakened security controls, 

which could adversely affect the confidentiality, integrity, and availability of information and 

information systems.

* * * * *
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APPENDIX A: STATUS OF PRIOR YEAR DEFICIENCIES

Four issues were noted relating to internal control over financial reporting in the Independent 

Auditor’s Report on Internal Control over Financial Reporting and Compliance with Applicable 

Provisions of Laws, Regulations, Contracts, and Grant Agreements on the Peace Corps’ FY 2013

consolidated financial statements.

2 The table below presents a summary of the current year 

status of these issues.

Prior Year Internal Control Material Weakness and Significant Deficiencies

Control Deficiency 2014 Status 2013 Status

Property, Plant, and Equipment Significant Deficiency Significant Deficiency

Information Technology Internal 

Control Environment

Significant Deficiency Significant Deficiency

Financial Management Analysis 

and Reporting

Closed Material Weakness

Accounts Payable Accrual Closed Significant Deficiency

 

2 Independent Auditor’s Report on the Peace Corps’ 2013 and 2012 Financial Statements
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AGENCY COMMENTS TO THE AUDITOR’S REPORT

Peace Corps has reviewed the Auditor’s Report and concurs with the findings in the report.
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Other Information
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Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges

Office of Inspector General

TO: Carrie Hessler-Radelet, Peace Corps Director 

Daljit Bains, Chief Compliance Officer 

FROM: Kathy A. Buller, Inspector General 

SUBJECT: Inspector General’s Statement on the Peace Corps’ Management and Performance 

Challenges 

DATE: November 3, 2014 

In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General 

(OIG) is submitting what it has determined to be the most significant management and 

performance challenges facing the Peace Corps. The challenges discussed in the attachment to 

this memo are to be included in the agency’s Performance and Accountability Report for fiscal 

year (FY) 2014. The challenge areas on “Programming and Volunteer Training” and 

“Accountability of Medical Supplies” that appeared in last year’s Inspector General’s statement 

were not included this year because management has taken corrective actions to remediate 

related issues discussed in OIG audit and evaluation reports. In addition, the agency has made 

progress in addressing Volunteer safety and security, and as a result, we have removed it as a 

separate challenge. Instead we have highlighted aspects of it that remain a challenge under 

“Business Processes.”

OIG has concluded that the following four areas present significant challenges at the Peace 

Corps: 

• IT Security Management (first reported in FY 2009) 

• Business Processes (first reported in FY 2011) 

• Excessive Personnel Turnover (first reported in FY 2012) 

• Training Overseas Staff (new for FY 2014) 

These challenges illustrate the most significant areas OIG believes need improvement for the 

Peace Corps to effectively manage its resources and minimize the potential for fraud, waste, and 

abuse occurring in its operations. Addressing the issues related to these challenge areas would 

enable the agency to increase operational efficiencies and improve mission effectiveness. 

Attachment
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Challenge Information Technology Security Management

Why This Is a Challenge 

An effective information technology (IT) security program helps protect an agency’s data from 

being misused by both internal and external sources and minimizes the potential of having its 

most sensitive data compromised. The federal laws and regulations governing IT security are 

specifically designed to strengthen an agency’s management of its related programs. They also 

provide for significant guidance that serves to prevent serious information security incidents 

from occurring. A central part of an IT security program in the federal environment is the 

Federal Information Security Management Act (FISMA), which was passed by Congress and 

signed into law by the President as part of the E-Government Act of 2002.1 Its overall goals 

include developing a comprehensive framework to protect the government’s information, 

operations, and assets. Since FY 2009, OIG has reported in its management and performance 

challenges that the Peace Corps has not achieved full compliance with FISMA or fully 

implemented an effective IT security program. Some of the issues identified have been 

outstanding for over five years and the agency has struggled to implement corrective actions. 

Further complicating this challenge, the Peace Corps plans to move a portion of its data media 

and information to cloud storage and transfer email services to a cloud service provider during

FY 2015. In September 2014, a pilot of cloud email and collaboration tools was initiated. These 

efforts are a major undertaking and the need for an effective and FISMA compliant IT security 

program prior to fully transitioning to the cloud is critical. 

Progress in Addressing Challenge 

Management has made some progress in strengthening Peace Corps’ IT security management 

programs through measures taken to improve its FISMA compliance. The agency has recently 

re-established a plan of action and milestones program and has begun following up on 

documented IT security vulnerabilities. However, there are a number of FISMA issue areas that 

were discussed in prior year challenge statements that have not been fully resolved. For example, 

although management has initiated a continuous monitoring program, including information on 

some of its systems, the program does not contain all the required aspects to be complete; some 

configuration management processes have not been fully implemented; contingency plan testing 

weaknesses still exist at overseas posts, headquarters, and regional recruiting offices; and 

systems security planning documentation has not been completely updated. Further, the Peace 

Corps has not fully implemented a comprehensive agency-wide risk management program that is 

effective in monitoring, identifying, and assessing security weaknesses, and resolving related 

problems at the entity or business process levels. 

What Needs to be Done 

Achieving full compliance with FISMA and other federal laws and regulations that apply to 

managing the Peace Corps’ IT security infrastructure is critical to having a program that is 

effective in ensuring the agency’s information, operations, and assets are adequately protected. 

The Peace Corps needs to place greater emphasis on improving its information security program,

including accomplishing greater FISMA compliance, and timely remediation of IT security 

weaknesses that have been identified internally, and through the annual FISMA and other 

 

1 Pub. L. No. 107-347.
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reviews and audits. The Peace Corps will need to place a sharper focus on improving its IT 

security program by assigning sufficient qualified personnel and prioritizing the agency time and 

resources necessary to become fully FISMA compliant and eliminate weaknesses. 

Key OIG Resources 

Peace Corps’ FY 2013 Performance and Accountability Report

Peace Corps’ FY 2014 Performance and Accountability Report 

OIG Semiannual Report to Congress, April 1 to September 30, 2014 

Challenge Business Processes 

Why This Is a Challenge 

Although the Peace Corps continues to improve key business processes and critical Volunteer 

support functions, as well as streamlining its operations, it is constrained by decentralized 

processes and a lack of modern systems. Specifically, the agency continues to be challenged in 

the areas related to Volunteer safety and security, data management, and property management. 

Volunteer Safety and Security 

In May 2012, the Peace Corps Director and the Department of State (DOS) signed a 

memorandum of understanding (MOU) to formalize the relationship and further define and 

clarify individual roles and responsibilities for overseas safety and security regarding Peace 

Corps staff and Volunteers. However, consistent implementation of the agency’s responsibilities 

remains a challenge because the agency’s safety and security program is a decentralized process 

with the responsible staff located within multiple offices both at headquarters and overseas. 

Furthermore, the lack of consistent communications with DOS regional security officers (RSOs) 

has impacted the agency’s implementation of the MOU. On September 1, 2013, in response to 

the Kate Puzey Act, the Peace Corps changed its crime reporting system to remove sensitive 

sexual assault details. However, the Peace Corps erroneously stopped sending RSOs details for 

all crime incidents, not just those classified as sexual assaults. It took over six months for RSOs 

to receive any official explanation from the Peace Corps about the change. 

Data Management 

Although the Peace Corps is working on modernizing some of its businesses processes, OIG 

audits and evaluations continue to find that several essential business functions remain largely 

paper-based, such as processes for travel, medical supply management, payment vouchers, and

several human resource functions (leave approval, performance appraisals, training records, and 

travel compensation time). The Peace Corps lack of automated business processes has led to 

inefficiencies and duplication of efforts, as well as data being more prone to human error. 

Property Management 

As of the third quarter of FY 2014, the Peace Corps reported having a total property net value of 

$29.6 million. OIG and Peace Corps external audits continue to find issues with property system 

reliability. In FY 2012, the agency implemented a new property accountability system to better 

manage its assets; however, there have been significant problems with data accuracy. 
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Progress in Addressing the Challenge 

The agency’s safety and security program has begun to mature in recent years, with the 

development of more vigorous roles and responsibilities for the safety and security manager 

position, updated guidance materials, and more formal involvement of security experts in the 

hiring of overseas security personnel. The agency is proposing an amendment to the MOU to 

address reporting of sexual assaults. 

The Peace Corps has implemented, or is working to implement, several systems to better manage 

agency records. Specifically, Volunteer Recruitment and Selection implemented the Database of 

Volunteer Experience to manage volunteer applicant data, and in August 2012, Office of Health 

Services implemented a medical applicant exchange system. Currently, the agency is piloting an 

electronic medical records system and plans to fully implement the system during FY 2015.

Furthermore, progress is being made to address property management deficiencies. The Office of 

the Chief Financial Officer plans to replace the existing property management system beginning 

in the second quarter of FY 2015 and anticipates full implementation by mid-FY 2016. 

According to management the replacement system has greater capability and they are confident 

that it will significantly improve property inventory accuracy. 

What Needs To Be Done 

The agency needs to continue to assess its operations to modernize its business processes. 

Furthermore, agency business processes must also support effective internal control and provide 

for access to reliable data. For the safety and security program, in addition to providing training, 

the agency should put in place formal guidance to ensure roles and responsibilities are defined 

and the MOU requirements are understood by all involved parties. Additionally, the Peace Corps 

needs to continue its focus on developing or acquiring more modern and automated systems to 

replace business processes that are manual or rely on inadequate systems. 

Key OIG Resources 

Follow-up Evaluation of the Volunteer Delivery System

Final Audit Report: Training Peace Corps’ Overseas Staff

Final Audit Report: Peace Corps Applicant Screening Process

Review of the Peace Corps’ Implementation of Guidelines Related to Volunteer Victims of Rape 

and Sexual Assault

Final Audit Report: Peace Corps’ Volunteer Safety and Security Program

OIG’s FY 2015 Annual Plan 

Management Advisory Report: Certification of Volunteer Payments

Recurring Issues: OIG Post Audits and Evaluations FYs 2009-2011

Challenge Excessive Personnel Turnover 

Why This Is a Challenge 

In June 2012, OIG issued its final report on the impacts of the “five-year rule” (FYR) on 

operations of the Peace Corps. Peace Corps management concurred with the report’s five 

recommendations. The FYR became law in 1965 and limited employment of Peace Corps’ U.S. 
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direct hire personnel to five consecutive years worked over two separate ‘tours’ of 2.5 years 

each. OIG’s evaluation found that the FYR, as intended, enabled the agency to create a constant 

flow of new employees including returned Peace Corps Volunteers; avoid the inflexibility 

associated with the civil service system; and prevent employees from working their entire career 

at the Peace Corps. However, the FYR accelerated the annual pace of employee turnover to 

between 25 percent and 38 percent, quadruple the average turnover rate in the federal 

government. The average tenure of agency employees over the past 10 years was just under three 

years. Excessive personnel turnover at Peace Corps exacerbated a range of common management 

challenges. Excessive turnover has undermined the agency’s ability to retain employees on the 

basis of performance; conduct succession planning; manage the continuity and transfer of 

essential knowledge, skills, and abilities; provide training and professional development to staff; 

and deploy its workforce efficiently. 

In addition, the FYR weakened the agency’s ability to attract and retain highly qualified 

professionals in the areas of contracting, financial management, information technology, human 

resources management, and medical support. It led to frequent staffing gaps in mission-critical 

positions overseas. Further, the practice of employing staff on 30-month tours compromised 

performance management and allowed supervisors to avoid actively managing underperforming 

employees. OPM recently characterized this unintended effect of the FYR as “a threat to 

effective performance management and mission accomplishment, and a risk to effective [human 

capital] management in accordance with the merit system principles and in compliance with 

Federal laws, rules, and regulations.” OIG estimated that over the five-year period from 2005-09,

excessive turnover driven by the FYR accounted for approximately 60 percent of $20.7 million 

in total turnover management costs.

2

Problems in recruiting and maintaining qualified staff at Peace Corps posts and minimizing 

lapses following departures exacerbates the impact of excessive staff turnover on the agency. In 

2013, OIG reported on challenges related to hiring overseas staff in its Final Audit Report: Peace 

Corps Overseas Staffing. OIG reported that the agency struggled to maintain a robust pool of 

qualified applicants and ensure positions are filled in a timely manner. Some of the underlying 

issues contributing to this challenge include managing timelines for positions that will be open, 

effective communications between the involved headquarters and field offices, consistency in the 

interview and hiring process, and adequately planning for transfers and unexpected vacancies. 

Progress in Addressing the Challenge 

The agency has made some progress in addressing the challenge. In response to the final report 

on the impacts of the FYR, the Peace Corps concurred with the five recommendations OIG made 

to reduce the negative effects the FYR has had on agency operations. As highlighted in the 

FY2013 Management and Performance Challenges, the agency has revised certain policies or 

practices related to the administration of its personnel system for instance it has: as of March 1, 

2013, started to make initial appointments of 60 months for new staff and converted the staff 

members that were on 30-month tours to 60-month appointments; worked to maximize the 

allowable percentage, 15 percent, for additional 30-month tours; and exercised the authority for 

 

2 This estimate only included direct costs and did not take into account costs that were more difficult to quantify, 

including: the loss of expertise when high-performing staff appointments ended; reductions in productivity; or gaps 

in institutional memory and knowledge.
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Other Information

greater retention of employees through the 12-month extension appointment for “special 

circumstances.” Additionally, the agency implemented an exit survey in November 2013 to 

better understand the reasons for employee departures. However, the agency has not provided 

documentation to OIG that would allow for a review and response to the steps it has taken to 

address the larger systemic issues that our recommendations are intended to address. 

As of September 2014, all five recommendations remain open. They are to reduce the rate of 

employee turnover and increase direct hire employees’ length of employment; identify which 

functions should be subject to periodic turnover, and implement a process to manage turnover; 

identify the core business functions and positions that suffer from frequent staff turnover, and 

determine and implement a process for acquiring and retaining qualified personnel; raise 

expectations among supervisors to address employee performance issues and provide supervisors 

with the training and support; gather and analyze data on the causes of unwanted, early employee 

resignations, and develop data-driven solutions to curb the pace at which employees resign early. 

Further, the seven audit recommendations OIG made in its report on the Peace Corps overseas 

staffing to improve how the agency hires certain overseas staff remain open. 

What Needs To Be Done 

The agency needs to address each of the five recommendations from the final report on the 

impacts of the FYR and the seven relevant recommendations from the final report on Peace 

Corps overseas staffing. 

Key OIG Resources 

Final Evaluation Report: Impacts of the Five Year Rule on Agency Operations

Final Audit Report: Peace Corps Overseas Staffing

Challenge Training Overseas Staff 

Why This Is a Challenge 

The Peace Corps relies on its overseas staff to ensure the success of its programs around the 

world. Overseas staff members have many responsibilities; including identifying jobs where 

Volunteers can be productive and contribute to host country development needs, managing 

financial and administrative operations, and ensuring the health and safety of Volunteers. Even 

though they work outside of the United States, overseas staff often has to abide by the rules of 

the federal government, including those related to ethics, contracting, and whistleblower 

protection. Ensuring overseas staff has the skills and information they need for their jobs requires 

training. 

In September 2014, OIG issued its final report on the training Peace Corps provides to its 

overseas staff. During this evaluation, OIG reviewed the training provided on a number of 

different topics, including cashier functions, classified materials handling, continuing medical 

education, medical overseas staff training, confidential handling of Volunteer allegations, 

contracting functions, equal opportunity employment, ethics, information security, purchase 

card, sexual assault policy, supervisory training, and travel card training. Although there are
142 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Other Information

many areas where the agency is putting a lot of resources into training, OIG work uncovered a 

number of challenges. 

An underlying problem is that the agency does not have a central office to develop, manage, and 

coordinate the training of overseas staff. The responsibility for managing training is largely 

decentralized, with different headquarters offices and posts responsible for identifying training 

needs, developing and delivering training, and using their own methods and systems to track 

training participation. There is no senior official who can develop a learning strategy for the 

entire agency and then ensure the Peace Corps has the financial and human resources needed to 

implement the strategy. 

Another significant challenge is that the agency does not have a training coordinator for host 

country nationals (HCNs), who make up over 90 percent of Peace Corps’ overseas workforce. 

Although some of the overseas positions are filled by U.S. direct hire positions, the majority of 

the staff is HCNs. Even though HCNs make up the majority of Peace Corps’ overseas workforce, 

the agency has not always extended the same training opportunities to them. 

The agency’s primary training and orientation for overseas staff members, called overseas staff 

training (OST), is not available to every staff member. According to OIG data, only 18 percent 

of current overseas staff (and nine percent of HCNs) hired between 2008 and 2013 attended

OST. The agency lacks an alternate mechanism for orienting new post staff members. Without a 

comprehensive, standardized orientation and training program for all overseas staff, each post 

decides what information will be provided to new staff. This creates variability in the quality of 

staff training, and there is no assurance that new staff is properly trained on important policies 

and procedures. 

OIG also reported that the agency lacks training records and a robust learning management 

system. Without these, it is very difficult, and sometimes impossible, to identify everyone who 

needs to take certain trainings and track training completion. This makes it challenging to ensure 

that employees have received training on mandatory and job-essential topics. 

Additionally, as OIG reports in the management challenge related to excessive staff turnover, 

time-limited staff appointments under the five-year rule creates an accelerated rate of turnover 

and underscores the need for a comprehensive staff training program to fully prepare new hires 

to perform their jobs. 

Progress in Addressing the Challenge 

Because minimal time has elapsed since OIG released the staff training report, the agency has 

not had time to implement the recommendations. However, during fieldwork, OIG uncovered 

areas where the agency has made progress. For example, the agency hired a training manager, a 

position that had been vacant since 2010. The agency also continued to develop and implement 

trainings needed to comply with federal laws, such as a training program for sexual assault 

response liaisons, a sexual assault policy training for all overseas staff, and supervisory training. 

In its response to the 2014 OIG report on training overseas staff, the agency committed to take 

further action to improve its training program. 
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Other Information

What Needs To Be Done 

OIG issued 25 recommendations in its 2014 report. Some of these related to ensuring that 

specific trainings, such as supervisory training, purchase and travel card training, and sexual 

assault policy training, are provided in accordance with federal laws and agency policy. Others 

were aimed at addressing the systemic issues uncovered during the evaluation. The report 

included recommendations to designate responsibility for the oversight of the agency’s staff 

training program, implement a training needs assessment process, create a standardized training 

program for new overseas staff, and implement an improved learning management system. 

Key OIG Resources 

Final Program Evaluation: The Peace Corps’ Training of Overseas Staff

Final Evaluation Report: Impacts of the Five Year Rule on Agency Operations

Recurring Issues: OIG Post Audits and Evaluations FY 2009-2011
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Other Information

Summary of Financial Statement Audit and Management Assurances Summary of Financial Statement Audit and Management Assurances

Table 1. Summary of Financial Statement Audit

Audit Opinion Unmodified

Restatement No

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Ending Balance

Financial Management 

Analysis and Reporting

Total Material Weaknesses

1 

1 

0 

0 

1 

1 

0 

0 

0 

0 

Table 2. Summary of Management Assurances 

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

Financial Management 

Analysis and Reporting

Total Material Weaknesses

1 

1 

0 

0 

1 

1 

0 

0 

0 

0 

0 

0 

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

FISMA 1 0 1 0 0 0 

Total Material Weaknesses 1 0 1 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Systems conform, except for the below nonconformance, to financial management 

system requirements

Non-Conformances Beginning 

Balance

New Resolved Consolidated Reassessed Ending 

Balance

FISMA 0 1 0 0 0 1 

Total Non-Conformances 0 1 0 0 0 1 

 
Appendices
146 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Appendices

Appendix 1

Status of Significant Deficiencies, Noncompliances, and Nonconformance

1 

Appendix 1

Status of Significant Deficiencies, Noncompliances, and Nonconformance

Kearney & Company, external independent auditor, issued the FY 2014 financial statement audit 

report which begins on page 118 transmitted through the Inspector General. The report identified 

three significant deficiencies, three instances of noncompliance with laws and regulations, and 

one nonconformance with the financial management system requirements. 

The status of the three significant deficiencies (Property, Plant, and Equipment – Repeat 

Condition; Information Technology Security – Repeat Condition; and Untimely De-Obligation 

of Unliquidated Obligations – New Condition) is shown below in Part I Significant Deficiencies. 

The three noncompliances (Usage of Treasury Account Fund Symbols – Repeat Condition; 

Obligation Controls – New Condition; Filing of Public Reports – New Condition) are shown 

below in Part II Noncompliances. The one nonconformance with financial management system 

requirements for the Federal Information Security Management Act of 2002 (FISMA) (Repeat 

Condition) is in Part III. Each part identifies the FY 2014 Completed Corrective Actions, if 

performed, and the FY 2015 and Out Planned Corrective Actions to resolve the deficiencies, 

noncompliances, and the nonconformance. 

 Status at Anticipated

Part I Significant Deficiencies End of FY 2014 Resolution Date

Property, Plant and Equipment (PP&E) Open Mar 2016 

Information Technology Security Open Sep 2017 

Untimely De-Obligation of Unliquidated Obligations Open Jun 2015 

PP&E 

FY 2014 Completed Corrective Actions 

1. Procured new asset management system

2. Identified and removed items in inventory that were no longer physically present

FY 2015 and Out Planned Corrective Actions 

1. Integrate new asset management system software

2. Validate systems’ internal controls

3. Conduct data verification and clean-up

4. Initiate employee training in PP&E policies, procedures, and software operation

5. Conduct pilot testing in U.S. and in the regions to ensure compliance

6. Perform employee training and system roll-out

Information Technology Security 

FY 2014 Completed Corrective Actions 

1. Secured usage of the U.S. Department of Justice Cyber Security Assessment and Management 

repository to create, track, and mitigate Plan of Action and Milestones in a centrally located federal 

repository

2. Purchased 40 AlienVault Security Information and Event Management (SIEMs) products to 

initiate continuous diagnostic monitoring of all posts 

3. Configured 25 SIEMs which are actively monitoring posts in the EMA Region
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 147

Appendices

2 

4. Satisfied the vulnerability assessment procedures report mechanism and the Plan of Action and 

Milestones audit findings

FY 2015 and Out Planned Corrective Actions 

1. Complete deployment of the remaining 15 AlienVault SIEMs to actively perform continuous 

diagnostic monitoring of all posts

2. Create new executive and privilege level role based training

3. Complete a Gap Analysis for the Risk Management agency strategy

Untimely De-Obligation of Unliquidated Obligations 

FY 2015 Planned Corrective Actions 

1. Enhance the tri-annual open obligation exercise to include a greater number of recently created 

obligations

2. Implement an audit process to sample open obligations to ensure timely de-obligation

 Status at Anticipated 

Part II Noncompliances End of FY 2014 Resolution Date

Usage of Treasury Account Fund Symbols Open Dec 2014 

Obligation Control Open Jun 2015 

Filing of Public Reports Open Jun 2015 

Usage of Treasury Account Fund Symbols 

FY 2014 Completed Corrective Actions 

1. Updated classification of all trust funds in the agency’s financial system

2. Reported all trust funds activity in the FY 2014 financial statements

FY 2015 Planned Corrective Actions 

1. Update agency policy on the fund classification and reporting

2. Periodic review of Treasury’s Federal Account Symbols and Titles Book and other federal 

financial authorities and guidelines for proper accounting treatment

Obligation Control 

FY 2015 Planned Corrective Actions 

1. Present enhanced trainings to overseas financial management control officers and headquarters 

staff concerning obligations

 

Filing of Public Reports 

FY 2015 Planned Corrective Actions 

1. Active engagement between White House Liaison and General Counsel Ethics Officer to ensure 

timely start of disclosure forms

 

 
148 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

Appendices

3 

 Status Anticipated

Part III Nonconformance End of FY 2014 Resolution Date

FISMA Open Sep 2017 

FISMA 

FY 2014 Completed Corrective Actions 

1. Identified all FISMA systems inventory boundaries

2. Current efforts are in progress for the identification and analysis of all external connections

FY 2015 and Out Planned Corrective Actions 

1. Complete the identification and analysis of all external connections

2. Create the remaining four FISMA systems packages to include system security plans, standards 

for security categorization, and minimum security requirements

3. Replace all existing ColdFusion applications
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 149

Appendices

Appendix 2

Verification and Validation of Performance Data

Annual Volunteer Survey

The Annual Volunteer Survey (AVS) is an anonymous, voluntary online survey of all currently serving Volunteers. 

This comprehensive survey provides Volunteers’ assessments of the effectiveness of Peace Corps training, 

in-country staff support, their personal health and safety, and their overall service experience. 

The 2014 AVS was fielded from June 9 to August 15, 2014, and 91 percent of Volunteers completed the survey. The 

high response rate from Volunteers minimizes total survey error at the global level. The survey is not, however, 

administered to a random sample of Volunteers. As with other non-randomized surveys, the AVS is subject to nonresponse bias.

The demographic profile of the survey respondents is representative of the Volunteer population on key 

characteristics: age, gender, length of stay in country, project sector, and status as a Volunteer. Responses to all 

AVS questions were directly provided by the Volunteers and housed in an external, electronic survey database. 

To ensure data quality, rigorous data cleaning procedures were applied to the dataset prior to analysis. Analyzed 

data were used to inform agency leadership about the Volunteers’ perspectives on key issues. The high response 

rate from Volunteers and the data verification and validation measures utilized ensure the high level of AVS data 

accuracy needed for its intended use.

The AVS reflects the experiences and opinions of Volunteers at a fixed point in time and can be influenced by various 

factors, such as major external events or the ability to recall information. The agency takes into consideration 

both statistical and practical significance to account for variation in AVS results from year-to-year. Thus, nominal 

percentage point movements may not be practically meaningful or significant. In using AVS results, the agency 

reviews longer-term trends to account for normal, expected variations in responses.

The AVS questionnaire underwent a significant redesign in 2014 to improve data quality and strengthen 

respondent confidentiality. 

The questionnaire length was significantly reduced—from 105 questions in 2013 to 55 questions in 2014—in order 

to improve data quality and the survey-taking experience. A detailed analysis of previous years’ data, matched with 

best practices from the survey research field, guided the redesign decisions. Questions that were highly correlated, 

that posed respondent confidentiality concerns, and questions that typical respondents would not have adequate 

knowledge to answer were excluded from this year’s survey.

To reduce measurement error and follow best survey research practices, adjectival scales (unbalanced unipolar), 

which had been intended to measure attributes that are bipolar in nature, were changed to more accurate 

Likert scales (balanced bipolar) in 2014. Adjectival scales were first introduced in the Annual Volunteer Survey 

questionnaire in 2010; prior to that, survey questionnaires primarily consisted of visual analog scales with only 

the end points labeled. The change from unbalanced to balanced scales affected 18 questions of the 55-question 

instrument. 
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To strengthen respondent confidentiality, all demographic questions were moved to the end of the survey. This 

change allowed respondents to make an informed decision about disclosing their optional demographic data after 

having answered all of the substantive questions on the survey. Consequently, the data quality of survey responses 

to non-demographic questions was expected to improve.

Due to these improvements to the AVS, results from prior years may not be directly comparable to results in

FY 2014 and future years. Changing from unbalanced to balanced scales has the effect of drawing respondents from 

an unbalanced center point into well-defined scale points on either side. While the agency is not able to quantify 

the effect of this change on the survey results, it is clear that FY 2014 results are consistently more positive than 

previous year results, likely due to the 2014 redesign, including the reduction of the length of the questionnaire, 

the modification of the response scales, and improvements to respondent confidentiality.

Peace Corps database systems

The agency maintains several database systems to collect Volunteer and program information. In order to maintain 

data integrity and ensure that the appropriate data entry methodology is followed, only authorized staff who 

have been properly trained can access key systems. Regular reconciliation processes among agency units enable 

users to verify and test performance data to isolate and correct data entry or transfer errors. Internal, automated 

system processes also ensure data is appropriately transferred among different applications. The required level of 

accuracy to provide current and historical information about programs and Volunteers is met through database 

rules and business processes. Where data limitations do exist, largely due to data entry compliance in isolated 

systems, they are noted in the appropriate performance goal section. 

Peace Corps administrative records

The agency collects data annually from headquarters offices and overseas posts that do not exist in a centrally 

managed database through an online data call (survey). Responses are housed in an external, electronic database. 

Data cleaning procedures are applied to the dataset prior to analysis. Leadership from all overseas posts and 

headquarters offices are required to complete the survey. The survey is designed with clear logic and data validation 

rules to minimize data entry error. The data are independently reviewed by the Office of Strategic Information, 

Research, and Planning and anomalies are addressed to improve data quality. Other data are collected from 

specific headquarters offices individually.

While these administrative records do not have the benefit of the verification and validation standards executed 

in Peace Corps database systems, the agency is able to ensure a high level of accuracy by working with individual 

offices and posts to develop reliable data collection and analysis procedures.

Employee Viewpoint Survey 

The Employee Viewpoint Survey is administered to all U.S. direct hire staff annually. The survey measures 

employees’ perceptions about how effectively the agency is managing the workforce. The agency utilizes the survey 

results to compare working conditions at the Peace Corps with other federal government agencies and to identify 

opportunities to improve workforce management.
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Appendices

The demographic profile of survey respondents is consistently representative of the U.S. direct hire staff. In 2014, 

93 percent of employees completed the survey. The survey is administered electronically, and questions are 

modeled on the Federal Employee Viewpoint Survey fielded each year across the federal government by the Office 

of Personnel Management.

The survey is not administered to a random sample of Peace Corps employees; as a result, the survey is subject 

to non-response bias. Additionally, the survey represents the views of employees at a fixed point in time and can 

be influenced by external factors. The agency accounts for these data limitations by drawing conclusions from 

multiyear trends and comparisons to results from other federal agencies.

Volunteer Reporting Tool

Volunteers report on their work and the progress they are making toward their project outcomes through the 

Volunteer Reporting Tool (VRT). The VRT is also utilized to report on Volunteers’ contributions to the agency’s 

strategic partners, such as the President’s Emergency Plan for AIDS Relief and Feed the Future. 

Since the development of the first version of the VRT in 2008, the agency has made numerous enhancements to 

the tool to improve the user experience, reduce data entry errors, and improve reporting. Volunteer reports are 

submitted to overseas post staff through the VRT on a quarterly or semiannual basis. Staff review all reports and 

work with Volunteers to verify data and correct anomalies prior to end-of-year analysis. The agency provides 

in-depth VRT training and support to Volunteers and staff to ensure data are collected, analyzed, and reported 

properly. The agency has also developed data collection tools for the project indicators related to Performance 

Goal 3.1 to standardize the methods that Volunteers use to collect data prior to entry into the VRT. The primary 

data quality challenge that remains is how to ensure an adequate percentage of Volunteers report on the project 

indicators related to Performance Goal 3.1. The agency is addressing this challenge by working with overseas posts 

to encourage higher reporting rates and by appropriately documenting and considering reporting rates in analyses.

Global Counterpart Survey

The first Global Counterpart Survey was launched in FY 2014 and is a short interview of Volunteers’ primary work 

partners administered by overseas staff. The 20-question survey is designed to provide information on the impact 

of Volunteers on local communities from the perspectives of the individuals with whom Volunteers work most 

closely. The survey is administered continuously throughout the year by overseas staff during regularly scheduled 

site visits. 

Data quality challenges include potential interviewer error and ambiguity in the total survey population. The 

interviews are conducted by staff experienced in project fieldwork and counterpart communication but who may 

not have extensive survey interviewing and data collection experience. Issues of translation, variation in interview 

styles, and accuracy of coding may have an unpredictable influence on the results. The agency is addressing this 

challenge by providing tools, training, and support to staff and by closely monitoring survey results to identify 

inconsistencies.

Determining the survey population is a challenge. There are multiple utilizations and interpretations of the 

title “counterpart” across the agency which will influence the survey population. To address this, the agency has 

defined counterpart as the Volunteer’s primary work partner for his or her primary project. For the purposes of 
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Appendices

performance goals 3.2 and 4.1, it is assumed that each Volunteer will have one official counterpart. The agency will 

track survey responses and explore instances where a post reports more counterparts than Volunteers who served 

during that time period. 

Host Country Staff Survey

The first systematic, global survey of Peace Corps host country staff was launched in FY 2014. The Host 

Country Staff Survey is a short, confidential voluntary survey designed to gather input from host country 

staff for two performance goals in the agency’s strategic plan. The survey was administered online from 

August 1 to August 31, 2014, and 58 percent of the host country staff surveyed responded. The survey included 

eight questions covering topics related to building an agency more inclusive of diversity and understanding staff 

training needs. In future years, the agency expects to expand the survey to include additional questions to more 

fully capture the perspectives of host country staff on a range of topics related to post operations and support. 

The primary data quality challenge with the survey in FY 2014 was the development of the sampling frame. 

Identifying and contacting all host country staff proved difficult; some staff members in administrative or support 

positions did not have official email addresses. Due to this challenge, the sampling frame only consisted of the 

host country staff who could be reached via email (approximately 1,870 out of 2,800 staff). Additionally, lack 

of computer access, differing levels of familiarity with online survey tools, and limited English ability for some 

staff may have contributed to non-response bias. Moving forward, the agency will explore additional methods 

of survey administration, such as supplementing online surveying with the use of paper surveys and developing 

questionnaires in additional languages, to facilitate the participation of more host country staff. 
THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014 153

Appendices

Appendix 3

Glossary of Acronyms

AVS Annual Volunteer Survey

CARS Central Accounting and Reporting System

CIP Construction in Progress

DEAO Designated Agency Ethics Official

DOL Department of Labor

DOS Department of State

EMA Europe, Mediterranean, and Asia Region

ERG Employee Resource Group

FASAB Federal Accounting Standards Advisory Board

FAST Federal Account Symbols and Titles

FECA Federal Employees Compensation Act

FISMA Federal Information Security Management Act

FMFIA Federal Managers’ Financial Integrity Act

FSN Foreign Service National

FYR Five-Year Rule

GAGAS Generally Accepted Government Auditing Standards

GSA General Services Administration

HSN Host Country National

IAP Inter-America and the Pacific Region

ISCM Information Security Continuous Monitoring

IT Information Technology

MOU Memorandum of Understanding

MRE Monitoring, Reporting, and Evaluation

OAA Ongoing Assessment and Authorization

OCIO Office of the Chief Information Officer

OGE Office of Government Ethics

OIG Office of Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

OSIRP Office of Strategic Information, Research, and Planning

OST Overseas Staff Training

PCMO Peace Corps Medical Officer

PEPFAR President’s Emergency Plan for AIDS Relief
154 THE PEACE CORPS :: PERFORMANCE AND ACCOUNTABILITY REPORT :: FISCAL YEAR 2014

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PP&E Property, Plant, and Equipment

PSC Personal Services Contractor

RPCV Returned Peace Corps Volunteer

RSO Regional Security Officer 

SARRR Sexual Assault Risk Reduction and Response

SA&A Security Assessment and Authorization

SIEM Security Information and Event Management

TAFS Treasury Account Fund Symbols

TEFL Teaching English as a Foreign Language

ULO Unliquidated Obligations

VMIS Vehicle Management Information System

VRT Volunteer Reporting Tool
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Paul D. Coverdell Peace Corps Headquarters

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